#SPXcampaign. Monday seems to have existed just to confuse everyone. Now Nasdaq is up after its stocks were in free fall. The VIX popped to multi-week highs, then settled quickly. My indicator shows an Upside Warning, but it seems we’re stuck in a range. A very tough market to call.
The standard SPXcampaign sells spreads with short strikes at around .10-.15 delta. Lately I have been carrying too many high-delta NTM, ATM, and ITM spreads, making me vulnerable to whipsaw. My mistake was not closing those aggressive positions in late August when my ITM call spreads all paid off and I reached account highs. What’s transpired since then would have been easy to manage if I was holding only the .10-.15 delta spreads. Instead, the market is Moe and I am Curly.