Rough week in the markets. The RUT was in the 1130s yesterday and the trades were doing fine though fairly delta negative (just not enough to warrant ANY adjustments). I did have a few TF futures, some long IWM and some calls on as additional hedges, but I removed those at a decent profit throughout the day just not at today’s high by any means. I wish I waited longer. I sold off 1 call per account at 131 (1050s Aug) and TFs at 1157 during the jobs report (damn!) and IWM at about 116.57.
Yesterday, the trades were down about 3% from our all time highs and healthy positive, this was understandable since the market was up about about 4% in a few days and our trades will always suffer in larger up moves. Today they’re down a lot more from the high but still slightly positive over-all. Our upside risk is not so high as today’s move was fairly big and sudden and took away most of that upside risk. Today’s up move was next level and puts the move from the Brexit lows at 8.3% up. This removes most of our profits for Aug but we’ve got limited upside risk and a huge profit tent built underneath. IF we get Any move into the below 1145 in the next 3 weeks, we’ll be singing. IF we continue up..well we’ll enter negative P/L but with not so much upside risk per say. The entire Aug trade now banks on a pullback where we’ll take some off and/or adjust on the upside.
The September trades I entered are now negative which is understandable since they’re a mix of 1150/1110/1060 and 1140/1100/1050s. I’ll have to add some call BWBs sooner or later if we continue to be at 1170 or above. I would like to wait for some cool down first. I want to see how this next week proceeds. I would have thought the EU bank risks were bad news but maybe EU money is now flowing into the US market. The internals today were insanity. That worries me a bit re continued up moves.