The market tumbled during the first three days of the week. It filled the two gaps left during the midterm election rally. But it hasn't retested the Oct low. It rallied the last two days of the week, mainly on trade war news. VIX popped and dropped. It was news and Twitter-driven market. There is a divergence between the price action and MACD. MACD is on a down slop while the price bounced for the last two days. We may see price rangebound for a few more days. Bullish seasonality may come in play after Thanksgiven.
Made a lot of trades for this monthly expiring week. The high VIX put pressure on my margin requirement. I spent perhaps 1/3 of my premiums on hedging cost. It's a matter of survival. I added 7 ITM bear calls during this selloff. The $45K borrowed capital is not enough to cover the margins. I may have to spend some real money to buy back a couple of positions.
Net liq is at 116K and available funds are at 24.5K. Leverage stays at 4.6. The portfolio is on a shaky ground. I will continue to look for ways to unwind some positions before the year-end. The Two DTE experiment has worked out so far with 3 tries. This is a mid-range VIX play. Will continue to use it when the condition is right.
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