I am still hanging on the finger nails trying reduce the damage done by the excessive moves. With the Bail Out on the threshold, the market is looking to the upside. Can you imagine Jerry Immelt's surprise when he looks at his stock price at 4pm. Bad news is good news - normally you would say these are the very characteristics of a bull market.
This market is driven by fear and news - someone suggested to me to set market neutral trading to the side for awhile and to make more directional trades. I have only one answer to that suggestion - Which direction?
I added to my RUT mess a butterfly a 710-750-790 this trade is ready to accept a run up and can endure some pain before it becomes non-salvageable.
This morning I started to swing my position towards positive delta's. I reduced for a profit some naked calls I had on the DIA OCT 119 and took some more profit on other covered calls. If we get a run up I don't want to loss the upside by having to many covered calls on my positions. When I say swinging towards positive delta's - I mean with moderation - always make you adjustment in small steps - never commit yourself you one direction. When the thought "I am hiting the jackpot if we go down" comes up, then you are at risk!
I am not saying we get a run up, as a perma bear I just want to be prepared. The only real indication we have is the RVX dropping 2.5 points.
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