After the big selloff last week the market made a big rally 2+% on Tuesday. Then the sales force came back. VIX jumped up to 20s but lower than last week's high 20s. IWM and QQQ are the weakest ones. So far SPX has retested Tuesday's b/o area and held at the low edge of it. RUT gave back most of the gains this week. It may go lower next week if the vol continues. Good earnings didn't help much as many hot names were faded after reporting. There is still not enough fears in the market. Many heavyweights are calling it would be short-lived.
I got slapped left and right on the big rally and the fall. Many of my bull puts were pushed into ITM. With the monthly expiry of the last two days, I had to roll out or close these positions. Also paid several hundred dollars to hedge my portfolio. Yesterday, I was lucky to make some premiums from these uneven butterflies to cover the hedging cost. I had to spend over $500 to close my two SPX 2770 ATM bull put. Glad my AMZN bull put was closed slightly above the money and only cost a minimal to close it. In this game, you win some and lose some.
Net liq closed at 116K. It's about the same level as last week. The margin ratio is above 50% for the weekend. So I will have fewer worries for a couple of days. I made a list of naked positions that I need to hedge. Most of my risk now is on the put side if the selloff continues next week.
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