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.
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