The majors got boosted from positive earnings. So far, more than 70% of the S&P components reported positive surprises. The 3.2% of the 1st Q's GDP reported today was better than expected. SPX and QQQ made ATHs on daily closing. The bulls are holding up despite several selling attempts during this week.
My net liq improved largely due to the 20+% surge on QCOM which reached an agreement with Intel on patent disputes. I continued to roll up my positions based on the delta. I tried to be more aggressive whenever the margin allows. I still can't keep pace with the rising market.
Net liq is above 130K which provided some relief. I moved 5K back to ET to reduce the margin interests. Leverage is still elevated at 4.8. I will try to use calendar and ratio spreads to hedge the puts.
Friday, April 26, 2019
Thursday, April 18, 2019
A Week Of Range-bound 4-18-19
This is a shortened week due to the market closing on Easter Friday. SPX closed flat from last week with a buying tail. Sellers could press it down, unlike RUT. It closed down about 1.5% for the week. MACD is showing weakness on daily. The current runup may be over or need some retreat. The earnings session is positive overall but hasn't produced much excitement. Something is going to break one way or another.
My results are mixed for this week. I was able to exit all of my SPX long puts since it didn't move much. When RUT failed to close above 1590 I had to roll out my 1590 and 1565 long puts to next week. I still have a couple of RUT long puts around 1600 for the next 2 weeks. RUT may be falling out of its current balance area which will give relief to my short calls but add pressure on my long put. I may test to see if I can switch positions between SPX and RUT. I have too many positions in RUT.
Net Liq is closed above 130K. It increased about 10K this week, mostly from QCOM's near 20% pop on its agreement with Apple. Net option values didn't change much. Leverage is near 4.6. I should be more creative and aggressively to reduce my leverages while the market is calm. It will be tough to get more funds when the next storm comes.
My results are mixed for this week. I was able to exit all of my SPX long puts since it didn't move much. When RUT failed to close above 1590 I had to roll out my 1590 and 1565 long puts to next week. I still have a couple of RUT long puts around 1600 for the next 2 weeks. RUT may be falling out of its current balance area which will give relief to my short calls but add pressure on my long put. I may test to see if I can switch positions between SPX and RUT. I have too many positions in RUT.
Net Liq is closed above 130K. It increased about 10K this week, mostly from QCOM's near 20% pop on its agreement with Apple. Net option values didn't change much. Leverage is near 4.6. I should be more creative and aggressively to reduce my leverages while the market is calm. It will be tough to get more funds when the next storm comes.
Friday, April 12, 2019
Q-1 Earning Season Started 4-12-19
Fed's dovish stands are confirmed once again from the release of the Fed minutes on Wednesday. JPM and WFC started big banks' earnings reports today. Both banks beat the estimates of the street. The majors responded positively. SPX broke above 2900. It's only about 2% from the ATH of last Oct. RHT is approaching 1600. It's the weakest of the majors. NQ is leading the pack and near the ATH now. Are we going to see a new high or a double top? I guess it's depending on the econ data and earnings reports. Technically there may be a good chance for sellers to step in on the first attempt to a new high.
My portfolio is stable for the week. I continued to add long puts based on the delta and margin. It's hard to keep the delta neutral as the majors kept going up. With today's breakout, most of my long puts were out profitably. But the shorts are deeper in the water. Why shouldn't I keep a bullish view and make delta positive? Fear of sudden drop?
The net liq is above 115K. Leverage is still above 5. I have survived but no real improvement. I need to be more aggressively adapt to the market direction. It's what you think that dictate your action.
My portfolio is stable for the week. I continued to add long puts based on the delta and margin. It's hard to keep the delta neutral as the majors kept going up. With today's breakout, most of my long puts were out profitably. But the shorts are deeper in the water. Why shouldn't I keep a bullish view and make delta positive? Fear of sudden drop?
The net liq is above 115K. Leverage is still above 5. I have survived but no real improvement. I need to be more aggressively adapt to the market direction. It's what you think that dictate your action.
Friday, April 5, 2019
Breakout To The Upside 4-5-19
The market continued to move up this week with the positive development of the trade talks. Today's NFP report is better than expected (196K vs. 175K expected). The majors moved up. SPX only added about 0.5% while small caps led the indices for 1%. Strangely the Dow didn't participate today's rally and closed flat. I noticed that the majors are at the top of their value area highs. Of course, they can go up much higher.
I tried to add more long puts to take advantages of the uptrend. The result is that I wasn't aggressive enough. I guess the fear of a sudden drop is influencing my trade selections. Other factors are the margin requirement and low volatility that hard to get orders filled.
Net Liq dropped 6K from last week. It ended at 11.2K today. It's in the result of my negative delta. Leverage is up to an alarming level of 5.4. It is safe to keep it below 5. We may get some relief next week hopefully. I may have to do a risk reversal next week which I should have done it earlier this week.
I tried to add more long puts to take advantages of the uptrend. The result is that I wasn't aggressive enough. I guess the fear of a sudden drop is influencing my trade selections. Other factors are the margin requirement and low volatility that hard to get orders filled.
Net Liq dropped 6K from last week. It ended at 11.2K today. It's in the result of my negative delta. Leverage is up to an alarming level of 5.4. It is safe to keep it below 5. We may get some relief next week hopefully. I may have to do a risk reversal next week which I should have done it earlier this week.
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