The recovery continued in April. The profit for this month is $19.5K with $18K in business and $1.5K in personal accounts. There is about $10K from grains recovery. Realistically, the indices trading generated about $9K. There was no position adjustment needed in equity trading due to low volatility and range bound market movements.
Grains continued to slide on plenty supplies and good weather. I had to rollover some bull puts again. I was over managing and over trading it early this year. Now I am letting it run its course without fighting the trend. Am I too passive now? I have only wheat positions left and it's over 10K underwater for now.
Looking forward, the low vol environment has been over two month and may not stay long. Mr. Market tends to teach people a lesson when they are over confidence and feeling in control. I need to stick to my rules of engagement. On Karen style entry, making sure to use percentage of OTM. It's very likely to run a 10+% correction in 40-60 days time frame. The PITM would change drastically as vol increases.
I plan to increase my trading size in credit spread from current from current 4-6 to 8-10 in IB PM account as my current entry rules are conservative and margin is back to about 50% level. Of course the No 1 rule is still risk control. I will increase my size as market condition allows.
I need to decide if I want to move an IRA account to TOS in order to learn the platform. I would continue to learn other style of options selling to enhance my trading. There are people selling indices options 60-90 days out with good results. I should test such setups further.
No comments:
Post a Comment