It was the worst 1st week of a year for US stock market. Every down day was more than -1% for SPX in the four out of 5 days. VIX is above 27 on high of the week. We may see VIX 30 soon. The sentiment is not in panic model as Friday's NFP report crashed the expectation in 290K vs 200K.
My account ended with $3252 realized profit this week. It was mainly from the rollovers of previous months. I had to rollover my SPY 199 puts which was ITM on Friday. It was an aggressive and over optimistic entry on 12-30. It was high on Vega. I have been selling puts on every down day without looking at the bigger pictures. I am too heavy on put side now. I feel that I am still rusty in reading the market and lack of strict discipline since I am back from the China trip. I kept selling puts as market went down and exceeded my limits of puts. I have some puts potentially getting ITM next week.
My goal for next week is to bring my risk parameters back to my plan, mainly to reduce my margin level back to 50% or better. Be prepared for another leg down of the market. My risk parameter should be always ready for a -20% shock. I need to learn how to set a test of 20% down in IB.
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