S&P finding some support around the 1080-1090 zone, which I mentioned the possibility of here. No telling if it’s a short term bounce or the beginning of another wave up, so hedging risk with some sold puts in ultralong ETFs tracking the S&P and tracking financials.
If we bounce, I’ll cover some puts around 1102 and the balance of them at 1115. A break of 1115 will trigger some short position unwinds and a market-neutral portfolio allocation. If we break 1085 on the downside, the hedges are back off. As of now, I’m staying net-short but hedged. The GDP release this Friday may catalyze some market direction.
Also closing a portion of my short book in X, just taking some profits ahead of a potential bounce. I will be posting a cover trade on the “Trades” tab if/when the balance of the position is unwound. So far this has been a great trade.