It was a mixed week for the majors. SPX, RUT, and DOW booked a slight loss but way off the lows while QQQ inched up a little. The selloff continued on Monday and intensified on Tuesday. Then, the bottom appeared on Wednesday. SPX and RUT challenged their 20 SMAs but failed to close above it. Overall, it's an inside week for all the majors. It's hard to tell what's ahead for next week. If the seasonality plays out it would be a stable or breakup week. However, the seasonal lower lows haven't played out yet. Not sure which leg comes first. It's the game of probability.
I didn't trade well this week. I panicked on Tuesday night's gap down. I made another Risk Reversal early Wednesday morning. SPX started to turn by mid of Wednesday. I didn't reverse it back. I couldn't turn it back due to the margin limit on Thursday. This mistake was originated when I broke my rule of not add a new position unless there is one out. I added one on Tuesday thinking that Monday's high was the beginning of a new rally. Now I have 3 short calls in SPX which erased all of my effort of reducing the sizes. I may have to spend $6-8K to close one next week. I plan to only roll one to late June for the expected downturn. I reduced one SPX put by combining 2 to 1 to next Monday.
Shadow Trader's trades didn't do well this week. The QQQ debit calls lost about $300 today. I pick a couple of short-term options in AAPL and RIOT barely breakeven. The 0 DTE has been working for me this week. I got all winners in my other accounts. The key is being selective and not chasing it. I won't play it when the volatility is high.
My goal for next week is to stay calm and be disciplined. I will work on reducing the number of positions before mid-late June.
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