The rate hike of last week started affecting the market this week. The small caps of RUT had 1% downside moves in 4 out of 5 days for this week. It's down 3.8% for the week. NASDAQ is red for all of this week after making a double top of ATH on Monday. SPX also made a double top then fall back. The interest rate above 3% appears scarier than the trade war and the North Korea nuke. The three majors are back into their August balance area. I am not sure if they will stay in the ranges or just a retest of the b/o areas before another leg up as the earnings session kicks off.
I had to increase my hedges in the put side as the downturn intensified. My changes of aggressively rolling bear calls during the new highs suffered as the market turned down. Three more of my bull puts are pushed ITM. The limited available margin really held me back. I need to look for new approaches to reduce the margin pressure. These broken wing butterflies for put protection helped out on RUT selloff. I made a couple of hundred dollars to pay off the hedges.
Net liq gave back about 12K for this week. It closed at 114K on a shaky level. The leverage level increased from 420 to 480 range. The margin ratio is above 50% for a change. Every Thursday and Friday I have to spend money and time to hedge for the weekend expiration. I am caught in a rock and hard place. Put side present a bigger risk for the portfolio should there is a crash or big selloff. The bear calls tied up so much of my funds as well.
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