All things considered, I handled it as best as I can expect, in that I protected myself by closing some bullish spreads, but didn’t panic close positions, leaving a couple ATM/ITM put spreads in place. Now I’m stuck with some underwater call spreads but won’t panic close them… tough part is we are officially under Downside Warning again, which means we could easily collapse in the coming weeks. Below is a chart showing the warnings on the SPX chart… after the 2nd warning, we still had some wild swings. But since then we’ve been squeezing into a tight range. Anyone’s guess, but this third warning could be a head-fake.
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