With one of the largest selloff in recent few years our Net liquidation values (Net-Liq) got obviously a hit. Great gains (on paper) turned down in a day. But it happened only due to a spike in volatility. As of now many of our trades are still in good shape thanks to trading our 16 delta options. Yes the stocks dropped but many are still above the strike and if the Market settles down next week, those trades will be great and many probably close for a profit. There are only about two or three trades which will need attention.
 

However, on the “slump day” we could trade frequently to the downside and we were Selling many credit call spreads on SPX bringing in nice profits as the market continued lower. You can review those trades on our Facebook Page.
 

What to do next?
 

I recommend staying cautious and don’t be aggressively bearish nor bullish. We need to see what this market wants to do next. I will be most likely staying aside unless I see a great opportunity and just keep managing the existing trades. I may enter a few short term trades on SPX but I cannot say as of now. I do not think this selling was a beginning of a bear market as there is a lack of catalyst to it, so this may be just a correction or a bit deeper dip.