What a swingy day yesterday was (50-55 points peak to trough) and it’s not ending anytime soon with the futures now down 30 (1.5%) points as I type this. \u00a0The big July MIC trades expire in 11 days ( 6 trading days) so we’re right at the end of it and will have to get out before the weekend.<\/p>\n
JULY RUT MIC<\/strong><\/p>\n I made two adjustments. At the start of the day I bought 8 1230\/1210 debit spreads and as it kept falling I added 10 1220\/1200 debit spreads. Towards the end of the day I had to adjust again but this time on the other side and I had sold 5 1240\/1220 debit spreads.\u00a0\u00a0 A bit of whipsaw experienced here. \u00a0The futures market for RUT (TF) is now down again about 1.5% so we’ll have a bit of pressure here. \u00a0I am concerned about a big correction in the next few days and how it’ll affect the exit of our trade. The futures aren’t looking too good right now. I have about 15 units left on this trade.<\/p>\n JULY SPX MIC<\/strong><\/p>\n In the off hours, on the big up move, I was able to get out of 71 1950\/1930 credit spreads which was nice. During the early part of the day,\u00a0I was actually quite a bit\u00a0above my adjustment point on the upside and had to reluctantly adjust. I sold two 2070 puts as a placeholder move to help correct my delta as well as sold 12 2090\/2080 debit spreads. This was done when we had solid down move in the AM, so I didn’t get terrible prices, the problem was this down move continued on at least for half the day. Made me wish I took more time making adjustments when the markets or volatile like this but we have to manage risk.\u00a0\u00a0When the market rebounded I bought back 2 2030 puts thus levelling off our debit spreads. \u00a0We ended the day up quite a bit on the SPX trade and as well we were pressured on the upside. I decided to leave the upside risk in this volatile market. \u00a0Good timing I guess, since the market is selling off right now. \u00a0Still, like the RUT MIC, the increased volatility in the trade will probably make things difficult for us. I have about 18 units left on this trade.<\/p>\n Bearish Butterfly<\/strong><\/p>\n I added some 1210 butterflies to even out the delta on the big move down. I then removed some of the 1270 butterflies on the big bounce. Ended the day with downside preference. Good timing again, I guess.<\/p>\n M3 Trade<\/strong><\/p>\n Very resilient. No issues or requirements to adjust yet<\/p>\n Kelvar Trade<\/strong><\/p>\n Very resilient. No issues or requirements to adjust yet<\/p>\n Anchor Trade<\/strong><\/p>\n A lot of the mechanical picks weren’t that affected by the big down move. I think its up about 5% as of close last night for the year. Not much else to report.<\/p>\n Aug MIC Trades<\/strong><\/p>\n Had to adjust the small amounts of MIC AUG trades I had on. \u00a0I *think we might be in a great position here. I’ll be closing off July trades and entering Aug trades at super high volatility. I’ll be entering AUG trade this week.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"