Well that was a day! We did break that low of yesterday even before the open. At least it took any doubt away of what the direction was going to be.
I am stopped out of the /6b future (GBP/USD) and I closed the RUT Iron condor. I was in this trade since Dec 30th and the clock was at 2.5% in 2 weeks. I was anticipating another 3% profit - but - my head is still a bit brushed by Nov (hope you forgive me). Seeing the vix move back over 50 - I just decided to play it safe. Between the TLT, /6b and now the RUT I getting close to my month target for FEB! Did not feel like taking the risk.
In addition if and when I have a definit signal that the vix will come down, I will sell (as blogged before) a naked SPY strangle both side delta's 10 approx netting 1.50. With the vix come down that will be a good trade - doing it in a size equal to the 3% profit which I left on the table - will help silence my greed.
You might remember that I am still the proud owner of a RUT JUN/Feb 370 put calender. It start off as a JUN/JAN calendar. The plan is to keep rolling - It works like a spider waiting in its web. Raising IV and a retest of the Nov lows will be its ultimate moment.
For now this trade is marginally profitable, but then I don't look at it from day to day - I know I can still roll 4 times enough to become at least break even.
I hope you did not get hurt to much - keep any on those Greeks

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