Market is still heading higher. We're in that first possible reversal point between 440-450. So if we don't reverse here then we'll probably see a quick move to 470 and perhaps 500 but I still believe the move should be capped by the falling 200 day EMA thats around 530. So I am still waiting for a pullback so I do not want to over trade this. So instead I did a couple of small tweaks for now.
I had purchased the 430/440 jun call spread a few days ago. Today I sold it and closed it for :
bot jun 420/430 call @ profit of $50.28
Instead I moved this up and opend a 430/440 jun call spread
bot jun 430/440 call @ cost of $552.36
I also adjusted the following position:
bot jun 390/380 put/short junQ 38 iwm put @ cost of $113.34
by selling the 390/380 put spread for $257.68 which results in the following position:
short junQ 38 iwm put@ credit of $144.34
I currently have 3 troublesome positions:
bot jun 320/330 call/short 33 junQ iwm call @ cost of $153.51
bot jun 330/340 call/short junQ 34 iwm call @ cost of $120.06
bot jun 330/340 call/short junQ 34 iwm call @ cost of $155.06
The 1st position I've done a small adjustment by buying the 430/440 call spread today.
For the remaining 2 positions consider the following two positions:
bot jun 380/370 put/short junQ 49 iwm put@ credit of $506.80
bot jun 410/400 put/short junQ 49 iwm put@ credit of $327.77
It seemed like these two put positions would become losers if the market stayed above 380 and 410 respectively. So what has occurred is that the market is rallying so high that these two positions are now becoming profitable as the above 3 positions are becoming unprofitable. For instance, right now I can close the 380/370/short 49 iwm put for a debit of about $435 which produces a profit of 506.8-435 = $71.8. Of course I'm still waiting to pull more profit out of this before closing. Essentially, from IWM 44-49 range, the loss from the 34 IWM is offset dollar for dollar by a gain in the decline of the 49 iwm junQ. The third position has a similar behavior except to a smaller degree because I only have a credit of $327.77 on that one.
So the situation isn't as dire as it first seems. Of course if this is the bottom and the market continues to shoot higher then I'll have more positions entering the problem zone. In this case I'll have to do more aggressive hedging like switching to ratio spreads for adjustments rather than a one-to-one selling a vert spread to purchase another vert spread. The decision to do this will be based on the 200 day becoming support.
I had purchased the 430/440 jun call spread a few days ago. Today I sold it and closed it for :
bot jun 420/430 call @ profit of $50.28
Instead I moved this up and opend a 430/440 jun call spread
bot jun 430/440 call @ cost of $552.36
I also adjusted the following position:
bot jun 390/380 put/short junQ 38 iwm put @ cost of $113.34
by selling the 390/380 put spread for $257.68 which results in the following position:
short junQ 38 iwm put@ credit of $144.34
I currently have 3 troublesome positions:
bot jun 320/330 call/short 33 junQ iwm call @ cost of $153.51
bot jun 330/340 call/short junQ 34 iwm call @ cost of $120.06
bot jun 330/340 call/short junQ 34 iwm call @ cost of $155.06
The 1st position I've done a small adjustment by buying the 430/440 call spread today.
For the remaining 2 positions consider the following two positions:
bot jun 380/370 put/short junQ 49 iwm put@ credit of $506.80
bot jun 410/400 put/short junQ 49 iwm put@ credit of $327.77
It seemed like these two put positions would become losers if the market stayed above 380 and 410 respectively. So what has occurred is that the market is rallying so high that these two positions are now becoming profitable as the above 3 positions are becoming unprofitable. For instance, right now I can close the 380/370/short 49 iwm put for a debit of about $435 which produces a profit of 506.8-435 = $71.8. Of course I'm still waiting to pull more profit out of this before closing. Essentially, from IWM 44-49 range, the loss from the 34 IWM is offset dollar for dollar by a gain in the decline of the 49 iwm junQ. The third position has a similar behavior except to a smaller degree because I only have a credit of $327.77 on that one.
So the situation isn't as dire as it first seems. Of course if this is the bottom and the market continues to shoot higher then I'll have more positions entering the problem zone. In this case I'll have to do more aggressive hedging like switching to ratio spreads for adjustments rather than a one-to-one selling a vert spread to purchase another vert spread. The decision to do this will be based on the 200 day becoming support.
