The October selloff got worse this week. The majors continued the volatile move. The pattern of the week was an up day followed by a further downfall day. Friday was another knock on the bull's head. VIX pushed up to near 28 and closed at 24. The current downtrend is well intact. The majors are very close to retest the Feb lows and it may or may not hold there. The volatility may stay elevated until the midterm election on November 6. The dust may settle down one way or another. An oversold condition often stays oversold just like the overbought condition.
Most of my trades were working to stay afloat. The clients' portfolios were threatened by the big 3-4% selloff on Wednesday. One got forced close positions. I had to wire in another $15K borrowed from my IRA. I had to make more risk reversals for all accounts to reduce margin requirements. Overall, it was a brutal week.
My net liq was saved by the additional funding from IRA. There is not a whole lot left that I can borrow. My margin ratio is below 30% after Friday's expiration. I may have to add more reversals on Monday. I will have to reverse them back to bull puts if the market recovers next week.
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