Another volatile week just ended. This time it was a big reversal up week. The majors started to position the day before FOMC's rate hike. The seasonality trend is also indicated a mid-March reversal. SPX and RUT rallied 6% and more this week. The market sentiment has improved a lot. However, the majors are still in their weekly balance range. The downtrend is not broken in weekly yet. VIX is 23.87 at the low of its uptrend and right above the 20 SMA. Bears may still have a chance to attack.
The IB Netliq ended at $162,336, up 17K from last week's $145392. The leverage is 284, down from 341. The realized P/L is $9,879. The collected premium is $2,824. The cash was mainly from buying hedges. It recovered from the $2.8K loss of the big surge after FOMC on Wednesday.
The personal account at ET performed well. It also benefited from debit IC which works when the vol is high. The realized P/L is $1,614 for the week. I still haven't traded the TOS account.
Overall, it was a good week since the market turned around. There are a couple of lessons learned.
1. I wasn't prepared for such a big bounce like every other time. I need to be more objective base my assumptions on key levels and price actions.
2. I still don't have a habit of placing stop orders right after my order is executed. I need to study IB's order types this weekend.
3. Stay calm to optimize my hedges. Like this Wednesday, I didn't promptly roll or close 2 short calls in the last 15 min. I lost $2800 when the last min rally came. Today, I made an assumption to let the 25x call spread stay. I could have moved it up for $500 more on every higher strike.
My plan for next week:
1. Delevrage my short calls while preparing for a possible pullback.
2. Place a stop order immediately for every order that is executed.
3. Study and identify daily trends and place alerts on the key levels of the day.
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