The touch of 1073 had me a bit stressed out. My gamma is positive and the loss on a big up move is quite static though significant. We’re now up 14% or so from the Feb 11 bottom (that’s like 2 weeks ago!). Everything is over-heated and I am trying to exercising patience in this up move while still managing risk. I did the same thing on our down moves and it worked out well. These moves are quite historic and really difficult to deal with. The great thing is that the Rhinos I bought back in the 950s were so cheap so that on the up move, it didn’t hurt as bad as it could have. Still from my year ATHs, I am down about 10% on equity and mostly from the move up from 1040 to 1070.
Right now the RUT has dipped to about 1067 now and unfortunately that’s still higher than yesterdays close which was painful in and of itself. I feel that I should throw on a few call BWBs despite waiting for 1055 vs 1075. I wanted to adjust at 1055 and the price of the BWB at that point was about 18.80-19.20 so if I am only paying an extra 70-80c then I’ll take it. I am bothered by the fact that SPX etc is weaker today but RUT continues its strong push up. Even if the expected fall to alleviate extreme NYMO (in SPX) comes to fruition, will RUT fall hard as well? Today, SPX was down what nearly 0.5% and RUT was making new highs at 1073. That’s concerning. So I am thinking I should probably be more prudent with a half upside adjustment.
I looked at the historic pricing of the BWB in OV for the past few days and I’ve got an order in at about 19.90 which I consider a decent price. I went a bit more closer to ATM with this since I have somewhat a market opinion.
1080 BWB pricing
19.75 @ 1062
19.70 @ 1061
19.45 @ 1058
19.20 @ 1057
19.40 @ 1058
18.50 @ 1050
18.05 @ 1048
18.00 @ 1047
1080 Call Calendar Pricing (for comparison)
9.25 @ 1047
9.65 @ 1051
9.95 @ 1062