Yesterday was great. Let's see how today goes. The SPY 140 calls that I was holding exploded with the rally. I scaled out (too early) and got short at 11:57am EST. I later bought SPY 142 calls against the short position, but anything below 1399.88 in the cash S&P effectively proves the trade wrong. I will then have to manage it aggressively. But even a total loss on the call trade (cheap OTM calls) would be something like a .025% drawdown.
Either yesterday completed an impulse wave up with more to come after a deeper pullback, or the market is still tracing out a complex high level correction before a new high, or it's virtually straight down from here over the next few weeks. With my current inventory, I'm well positioned for each scenario.
The 1390-1393 area could provide early support today, and it should be watched as a key level. Much below there and 1358.38 becomes the next level of interest.
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