The majors continued their upward at the beginning of the week. NASDAQ and SPX made ATHs until this Wednesday. SPX touched 3588 and the century figure of 3600 was just a touch away. RUT was close to break the 1600 mark again. Then, out of nowhere the sellers came out on Thursday after better than expected jobless claim numbers. The tech FAANG stocks were hit hard. At the heights of the selloff, SPX and NASDAQ were down 4 and 5% respectively. I was totally unprepared for it. It was another hard-hit day today with the Labor Day long weekend ahead. The majors recovered partially in the late afternoon but all closed below the lows of yesterday which could be a bearish signal. It appears this reversal is for real. The new top may be in for now.
My netliq was hit hard today and closed at 102K. My shorts absorbed some of the downsides yesterday. It got reversed today. I had too many longs expiring today. My net liq went below 100K in the mid of the selloff. I had to use the times when the netliq claim up to 100K to roll my long puts. It was a tough day. I booked 23K losses to roll these positions. I only had one RUT long put closed out. I will implement stop losses for all my recovery positions. It could have saved me a lot of problems. A lesson learned the hard way.
The O DTE strategy worked mostly this week. I took 2 stops for the IF I made on Wednesday which I followed my rules. That was an improvement. I didn't follow my plan today though. I was going to wait until 10:30 to place my 0 DTE orders. But I jumped in too early after I missed the bear call entry. I assumed it would be a small ranged choppy session since the long weekend is coming. I didn't take my stops during the selloff. I assumed there would be a bounce-back in the afternoon. I broke my rules despite the winning results. I should have taken the stops and enter at lower prices to recover my losses.
The high volatility period is here. I have to work hard on my stop-loss rules in both recovery and 0 DTE trades.
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