Disclaimer
This is for informational purposes only.
Discussion
Trade 1: Sold the puts purchased yesterday.
Trade 2: Sold some more to bring the position down to just below a half position.
Trade 3: Added back half of what I sold this morning around 3:30pm EST.
Rationale 1: Really didn’t want to sell them, but I want to be nimble and with VVIX up big this morning and Patrick Harker out with a speech titled “On the Flight Path to a Soft Landing”, just in case I want to book some profits.
Rationale 2: Pretty good panicky spike in VOL since I sold the first tranche. Want to bring it down to a very comfortable position to ride out what’s remaining of what is likely to be an interim correction.
Rationale 3: This rally off the lows was led by defensive sectors. Very bearish from the standpoint of the rally’s durability.