Feb 26 – EOD Trade Update

I went ahead and added several 1020/1070/1100 Call BWBs to my April trades. I got the deltas lower and I got my fills at the low of the day (nice) but I am concerned about RUT strength today especially in relation to the April trades. This trade doesn’t love relentless 10%+ rallies and I do have some exposure up top. What especially concerned me was that it was steady down for SPX and even after hours, SPX accelerated its sell off, however, in contrast, RUT moved up and then maintained a narrow trading range and held its gains even after hours. There is some rotation happening and that’s why RUT had strength. This strength going into next week will require more upside adjustments to the April trades and though I got our deltas down for the March trades, they’d prefer a small (or big) down move to close. Any big move up will be somewhat painful across the board.

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