Daily Update: XLE up over 1 st. deviation Today, not very nice to have a big move right after you enter a non-directional trade. Nevertheless, that`s why I have a plan and put contingent orders, so I don`t need to fret about market movement, some times this is a lot easier said than done.. That being said, bellow are the risk profile with possible adjustments and the dashboard.
Down-sie adjustment, considering volatility increase of +5%
Up-side adjustment, considering volatility drop of -5%. Will very likely close PUT spread and roll it up if we get there this week.
Dashboard. Price action pushing against the Top of the volatility cone.
Down-sie adjustment, considering volatility increase of +5%
2 comments:
Gustavo:
This is what I came up with for the topside adjustment if -10% is hit on the topside by tomorrow.
(assuming no volatilty change)
http://is.gd/mPxa
-10% of the original margin for me was -$350
Your downside adjust seems correct at -$312
Cheers. T-CR
Thank you, I did reduce volatility by 5% for the up-side, maybe that's why it is different.
Gustavo
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