The FBI ruined a great rally. More importantly, the VXST is now trading higher than the VIX signalling more downside is likely unless we get a quick reversal of volatility.
Luckily, we had the extra 2150/2160 SPX call spread expire worthless on Friday. We have another expiring tomorrow.
However, now our 2130/2120 expiring tomorrow is in the money, and if we don't get a bounce early tomorrow, I need to move it out. I will have to add some call spreads close to the money also.
Generally, the week before the elections is bullish. It looked like everything was going well on Friday to start that process off, but we have huge political risk with the FBI investigations now.
I need to be very aggressive in protecting our positions if this turns into a large sell off.
