Stretched And Hedged

As I said yesterday, the market felt stretched. But it doesn't care what I think. I waited until around 1 pm to put on some shorts and was using SPY 135 puts. I went long against the puts with the ES in multiple trades and added to the puts on most every up spike. By the end of the day, profits on the ES trades were over 4X the loss on the puts. That is why I love hedging. You can be wrong in your premise and still profit. I'll do the same thing today. If the market doesn't turn down by the afternoon, I'll simply dump the puts.

CHF and SEK still look good so far. CHF still needs to clear .8525.

I have no idea what the NFP payrolls number is, and don't care. All I care is how the market reacts to the number.

UPDATE: You may find this hard to believe. I was unhedged with the ES overnight, added the ES at 8:09 then went flat at 8:24 right before the NFP payrolls number. Thank god.

I'll be getting out of most of the SPY 135 puts at the open and will hedge the rest.

The technique I used to accumulate this large put position with little risk (and some tidy profits with the ES) is explained here and here