SPX 8th Up Week 12-22-23

 SPX closed its eighth consecutive week up before Christmas.  SPX has yet to reach its all-time high like Dow and NQ did. The bulls bought Wednsday's1.5% selloff. Santa Rally is live and well so far. The seasonality is playing out well. 

IBQ Netliq is down again this week. It went down another 6.4%, from 221K to 207K. It closed at the lowest level since Feb. My 10 months of work were wasted. The realized P/L is $10K. The collected cash is only $520. I bought the first 1-1 system for $980. It's my experimental trade for 2024. The delta improved to -157 from -300. The options' value is up 4% from -322K to -336K. The leverage is up 10% from 202 to 227. The total positions are C8 -0, P11 +3. I made 37 trades for the week. It was less than last week's 60. The commissions cost $100.8. The situation got worse rather than better. 

The two small accounts got further ITM. The collected cash is $2880. IBP and TOS got $2104 and $776 each. I had 2 BFC expansion trades. One winner and one loser. I didn't place a stop-loss order on the distribution break on Wednesday.

Lessons and Plan:

1. Adding a new rule of delta 250. I must adjust my positions when the delta is positive or negative 250. It worked for me in the first half of this year. It also needs to incorporate the -1+1 rule. 

2. I will adjust my positions from the further out-of-date positions first. They give me more room to maneuver. 

3. All of my losses are from the no-stop trades. I must enforce the stop-loss rules.           

CPI & FOMC Induced Big Rally 12-15-23

 The better CPI numbers and FOMC provided the market a big boost. DJ and NQ reached their all-time highs. SPX at 4720 is only about 100 points, 2% away from its new high. The small cap is legging behind. The Santa rally keeps going. The dip buyers are very active. SPX and NQ booked their 7th consecutive winning week. 

IBQ Netliq suffered a big drawdown this week. It's down 11.5% from 268K to 221K, the lowest since May. The realized P/L is merely $4183. The collected cash is only $1368. The delta is in the red at -300. It went up to -500+ on FOMC. The options' value shoots up 18% from -265K to -322K, the worst since Feb. The leverage is up to 20.2. It's set back to May again. The total positions are C 8 -0, P8 +2. I made 60 trades for the week. The commission cost is $238. It was a disastrous week for me. 

The two small accounts got deeper ITM. The collected cash is only $1890. IBP and TOS each got $1371 and $520. There were some points up with 2 SCs in each account. These small improvements are far behind the big rally.    

Lessons and Plan:

1. I followed the -1+1 rule.

2. I neglected the negative delta impact. I will make the adjustment from the further out date (FOD) first. FOD usually has more room to move around. 

3. I will continue to study the 1-1-2 system for next year. 

The Rally Keeps Going 12-8-23

 SPX held above 4540 for more than 2 weeks. It finally broke above 4600 after the better NFP today. It closed at 4604, a new high of 2023. SPX ended with 6 consecutive winning weeks. Divergences are developing between MACD and SPX prices. The daily MACD has crossed down for 3 days. We may see some kind of seasonal retrace soon. 

IBQ Netliq is up 3.7% from 258K to 268K. The realized P/L recovered $18545, including last Friday, Dec 1. The collected cash is only $1059. The delta is deep in the red. The options' value is down 4% from -276K to -265K. The leverage ended flat at 143. The total positions are C 8 -2, P5, -3. That's the area of improvement. I made 60 trades in 6 days from Dec 1 to Dec 9. It's an average of 10 trades per day. My main focus was on reducing positions. 

The two small accounts didn't get much relief with this rally. The collected cash is $3230 for the 6 days from Dec 1 to 8. IBP and TOS each got $1522 and $1708. There are 2 SCs in each account, the same as last week. The drawdown has been 6 months now. 

Lessons and Plans:

1. I consciously followed the rules of the position sizing this week. It may not be comfortable to follow the rules. It's necessary to do so for the long-term benefits. 

2.  The delta adjustment must start early in the trend. I should realize and overcome the fear and uncertainty. 

3. I am continuing to study the 1-1-2 strategy. Plan to add it to my trading next year.  

A Fast & Furies Rally of Nov. 11-2023

 SPX rallied nearly 10% in November. It raised 486 points from the Oct 27 low of 4110 to 4595. It touched the high of 2023. The Santa rally started strong so far. I didn't quickly adapt to the new market regime. The jet lag and catching a cold didn't help me either. 

IBP Netliq is down 9.5% from 282K to 267K. It didn't recover from my trip to China in Oct. The realized P/L is -19K. I only collected $3.2K cash for the 3 working weeks. The options' value is down 14% from -226K to -264K. The leverage is up 16% from 120 to 142. The total positions are C 10 +0, P8, +2. The commission cost is $823. I made 163 trades including the ones during my China trip. The delta is down from -245 to -386. November continued the drawdown from Oct. 

The two small accounts got upside down again. The SCs are ITM now. The total P/L is recovered by 8.9K. The cash premiums are 4.75K. IBP and TOS got $2179 and $2570 each. TOS had one BFP right before the CPI report. I split it to SC and failed to take stop-loss. 

Lessons and Plan:

1. I followed the rules for position sizing. 

2. I should figure out how to balance the position size and RR adjustments.  

3. I am still studying the 1-1-2 system.      

Back In The Game 11-17-2023

 It's the first full work week since I returned from my China trip on Nov 7th. It took over a week to recover from my cold and jet lag. The trend has switched from a terrible Oct to a Nov rally. SPX gained 10% from 4080 to 4514 during this period. The EOY rally is in play now. 

IBQ Netliq is down 9.2% from 289K to 268K. The netliq is at the lowest level since March 28. The drawdown is the result of my trip from mid-October. The realized P/L is -$43226 as I was in heavy SCs. The options' value is up 11% from -233K to 260K. The leverage is up 23% from 107 to 139. The better CPI report on Tuesday caused SPX a 2% rally. It made my skews upside down. The cash collected is $1889. The total positions are C9,-1, and P7,-1. I made 59 trades for the week. The commission cost is $234.7. I spent a lot of time to adjust my positions after Tuesday's CPI. The delta is down from -307 to -237. I had to make a risk reversal from SC to SP. I am getting back in the game now. 

The two small accounts almost got unwinded before the CPI report. The collected cash is only $1238. IBP and TOS got $756 and 482 each. There are 2 SCs left for each account. I had one BFP in TOS last week. It dragged into this week. I didn't follow my rule to take a stop loss. 

Lessons and Plan:

1. I didn't follow my rules for position sizing. I have a tendency to gamble my luck.

2. It looks like I will miss my goal of eliminating these DITM positions for this year. I am researching new strategies to replace my current ones. I am studying a 1-1-2 trade system and daily directional setups.     

Is Bad News Now Good News? 10-6-23

 It was a flat week with large swings. The market waited for Friday's NFP all week. The SPX's 200 DMA is at 4200. The Sept NFP was 336K vs.176K expected. The NFP number is twice as high as expected. SPX futures dropped 1% after the news before the regular hours. I thought SPX was going to test the 4200 level below. It didn't happen. The 80/20% rule played out to the slim side. It was up 1.2% from down 1%. SPX ended at the top of the 4220 - 4332 range. It's still a counter-trend rally so far. But the Bulls get a better shot now. The bulls need to close above 4335 to get a new trend start. 

IBP Netliq is down 3.7% from 297K to 285K. My patient got thrown away on Friday. I was reducing my SCs for most of the week. The options' value increased 5% from 216K to 228K. The leverage is also up from 109 to 116. The realized P/L is -454. Friday wiped out over 20K gains. The delta is reversed from 256 to -154. The cash collected is only about $2100. The total positions are C8 +1, P7-1. I made 93 trades, an average of 18.6 per day. The commission cost is $336.48. It was a down week. I broke my rules, especially on Friday. My emotional acts resulted in my poor performance. 

I had to spend money to roll SPs daily for the two accounts. They got inverted on Friday's rally. The realized P/L is -$16,317. The downside move pushed the SPs deeper into the money. The collected cash is only $180. IBP and TOS got -211 and +391 each. TOS has 3295, 4315 SCs, and 4285, 4350 SP. IBP has 4295, 4305, 4310 SCs, and 4435, 4385 SPs. 3:2 Inverted positions are too risky for me. 

Lessons and Plan:

1. I broke my rule of not acting on pre-market during a major news event. 

2. I tend to be wrong in my bias in the volatile days. 

3. I let fear and greed take over instead of staying calm, patient, and disciplined. 

4. I have 3 trading days left before my trip to China. I have to close some of the positions. I will roll the IDTM positions to November. 

5. I will do a stress test for my IB accounts. 

   

September - The Third Consecutive Down Month For SPX 10-1-2023

 This September lived up to its seasonality. SPX closed with the third consecutive losing month. The other major stock indices ended with 2 continued monthly losses. The SPX trendline from last Oct has been tested and held so far. October could be volatile at first and recover later. It's the seasonality at play so far. 

IBQ Netliq is down 7% from 318K to 297K. I was focusing on reducing the SCs instead of lower SPs early on. This strategy turned out to be wrong. It resulted in the options' value up 10% from -195.6K to -216.8K. The leverage is up 10% from 96 to 106 as well. The realized P/L is $76,358. It's mainly from the reduced SCs. The DITM SPs are underwater. It should be realized when the trend turns up. The collected cash is $6,540. It's only about 2% return of the netliq and half of August's collection. I didn't trade any BF hedges due to the low B/P. The positions are SC 7-2, SP 8-1. The delta is at about 300. There were 267 trades for the month, 112 less than August. The total commission is $1012, $450 less than August's $1462.  

The two small accounts have been in the dump for 4 months now. The realized P/L is $27,186 in recovery. IBP and TOS collected $5845 and $1742 each for the month. I need to double-check the IBP amount.  There are about 5.8% and 1.7% returns on their 100K options B/P. 

Lessons and Plan: 

1. I have a trip to China on Oct 13. There are about two weeks left for trading in Oct. 

2. I will move some DITM positions to late November and beyond. 

3. I will buy back some positions to reduce the margin requirement in IBQ. 

4. I will eliminate all positions in the two small accounts before my trip.  

      

The End of Month and Quarter 9-28-23

 SPX closed in red for the last week of September. It was the fourth consecutive losing week. SPX is at the weekly VAL of 4238-4541, a 300-point range. It matched the downward seasonality of September. The first part of October could be volatile as well. The averted government shutdown may not boost much of the market sentiment. 

IBQ Netliq is flat from 296K to 297K for the week. I aggressively reduced the SP strikes to hedge the impact of the continued volatility. I even made a 1:2 risk reversal from one SP to 2 SC. It luckily worked out. The options' value stayed flat at -216K. The leverage is at 109 from 110. The realized P/L is $59,129. It's mainly from the exited SCs. The unrealized loss in SPs is not included. It will be reduced when the market turns up. The delta is down 53%, from 499 to 266. The collected cash is $2271. There may be some dividends from stocks. The total positions are C7-1 and P8-1. I made 84 trades for the week. I had to buy more hedges for B/P. The commission cost is $313. It was a flat week overall. 

The two small accounts have been in the dump for 4 months now. It was a hard lesson I should have avoided. The realized P/L is -1407. The cash collected is -$816. I had to pay to roll the DITM SPs. I had a negative cash flow for the first time. Like some said, anything can happen in trading. TOS has 1 4380 SP and 1 4330 SC, inverted. IBP has 4450, 4400 DITM SP, and 4280 SC, inverted.   

Lessons and Plan:

1. Keep reminding myself to be calm, patient, and disciplined;

2. Be flexible in my market bias; 

3. Remember to set the levels at the beginning of the day;

4. Learn to make some directional trades when the trend is identified. 

The FOMC Selloff 9-22-23

 It's a volatile week with FOMC on Wednesday. J. Powell indicated there could be another rate hike this year. The market didn't like it and sold off. The selloff continued on Thursday. The attempted recovery was knocked down by the end of the day. SPX lost 140 points in the last 3 days. It closed at 4320, down from 4470. A couple major support lines were breached. We are into the late September to early October downturn in the seasonality. 

The IB portfolio suffered a significant drawdown with this selloff. The IB Netliq is -13% from 339K to 296K. I focused on eliminating SCs instead of reducing LPs. I underestimated the magnitude of the selloff. The options' value increased 19% from -175K to -216K. Both are at the worst levels since last May. The leverage is up to 110 from 85 last week. The realized P/L is $20,574. It's mainly from the exited SC positions. The sea-saw is up in SP positions. Delta is up to 500. The collected cash is only $800. I had to spend on buying hedges. The total positions are C8-2, P9-0. I made 64 trades for the week. It's almost 13 trades per day. The commission cost is $221. The option holdings apparently couldn't withstand more than 1% market swings. The only way to reduce such a significant drawdown is to have fewer positions. 

The two small accounts got slapped with the wild swings. The realized P/L is -$2313. The cash collected is $$2688. IB and TOS made $2778 and -90 each. TOS has 1 SP DITM. IB has 2 SP DITM. I may reverse one position in IBP. 

Lessons and Plan:

1. I continue to work on my calmness and patience. 

2. A mid-day meditation is helpful.

3. I need to react quickly when the trend changes. 

4. Set my priorities straight according to delta and netliq conditions. 

         

A Failed Breakout 9-15-23

 The trendless swings continued this week. CPI and PPI came out hotter than expected. The market rallied. It reversed and erased the two days' gains on Friday. It turned out to be a fake breakout. SPX is back between the 50/20 DMA again. The FOMC meeting is next Wednesday. The market is expecting the Fed to pause rate hiking in September. The volatile 2nd half of September begins next week seasonally. 

IBQ Netliq is up 4.5% from 324K to 339K this week. The options' value is down 7.6% from -189.2K to -174.8K. The leverage is down from 92 to 84. The realized P/L is -$1959. The drawdown is getting smaller. The collected cash is only $1146. The total positions are C 12+1, P 9-2. I made 48 trades which is 12 less than last week. The commission cost is $190. I made some progress in terms of Netliq increase and the total positions. 

The two small accounts continue to struggle. The realized P/L is $5646 in recovery. The cash collected is $2668. IBP and TOS made $1775, $893 each. TOS has 2 SC and 1 SP positions left. IBP has an alarming of 3 SC and 4 SP. I need to reduce the positions in IBP. 

Lessons and Plan:

1. I started to remind myself to be calm, patient, and professional during the work days. It needs to happen more often. 

2. I am still struggling with my slow and fast thinking, conscious and subconscious. 

3. Identify the trend and establish the levels in the morning. Be ready to change my bias when the market changes. 

4. My main goal is to reduce my total positions in all accounts next week. Stay with the trend. 

A Trendless Down Week 9-8-23

 The major indices ended down for this Labor Day shortened week. There was little economic news for the week. The market moved up and down widely. It closed in a range bound inside-week. SPX ended the between its 20 and 50 DMA. It may be waiting for the CPI report on Wednesday. Seasonally speaking, September is a low return and neutral or bearish month. 

IBP Netliq closed up 1.2% from 318K to 324K for the week. It's still down 4K from last week. All the numbers here include last Friday, Sept 1st. The options' value is down 3% from -195.6K to -189.2K. The leverage is down from 96-92. The realized P/L is -$13,090, on top of last week's -$64,370. The collected cash is only $600, plus $1,700 interest for August. The total positions increased by 2 to SC 11 and SP 11. I made 60 trades for the 5 days. It's an average of 12 per day. The commissions cost $208. The week had a lot of effort and a lack of progress overall. I am still in the mud. 

The two small accounts are in the 4th month of the dump. The trendless swings didn't provide much relief. They are in the sea-saw situation. The realized P/L is $26,305 in recovery. The cash received is only $1,833. IBP and TOS made $1293 and $543 each. 

Lessons and Plan:

1. My intention is calm, patient, and professional. It takes time to root in. 

2. The anxiety and fear of losing are two major factors during my work.

3. I am working on my self-discipline. I tend to look for excuses to break my rules. 

4. I like this quote: "What you get by achieving your goals is not as important as what you become by achieving your goals." 

5. I am considering buying back some ITM positions to reduce my market exposures. I have to reduce my total positions before my October trip to China.     

      

The Volatile August 2023 9-2-23

 The volatile August is finally behind us. All major indices closed lower for the month. It was a volatile but trendless month. SPX traded 200-point range. It ended back to the breakdown point above 4500. We may see an up-range mode for the first half of September seasonally. The FOMC meeting is in mid-September. I will follow the price actions and be flexible in my bias. 

IBQ Netliq ended at 318.6K vs. 320.7K from July. It's basically unchanged. The options' value is up 1.6% from -192.6K to -195.6K. It's flat as well. The leverage is the same at 96. However, the realized P/L is -$41,996. The large swings forced me to roll the DITM positions on both sides. The collected cash is $12,769. It's only a 4% return of the netliq. It will be $14,659 if including the +$1800 difference. The total positions are 18. It's one less than July. I moved all RUTs to SPX. The total trades were 379, 29 more than July's. It's an average of 16.5 per workday. I am still over-trading. The commission cost was $1462. It's 11.5% of the collected cash. 

The two small accounts have been in the slump for 3 months now. The cost of time and opportunities drag on. The realized recovery P/L is $40,522. It's better than July's -$28,684. IBP and TOS collected $$6420 and $5006 each. It's about 6.4% and 5% return based on their 100K options B/P.  

Lessons and Plan for September:

1. I still break my rules from time to time. I tend to get emotional during major events. 

2. I will continue to practice self-awareness and fast, slow thinking. 

3. Knowing the time of the day helps me to be patient. 

  

 

A Rally In The Last Week Of August 9-1-23

 The major indices closed the last week of August with a rally. The Jackson Hole reversal gave a clue last Friday. The downward slope of 50 DMA didn't provide much resistance. SPX is in a  Fib retrace/ABC pattern or an inversed head and shoulders pattern on the daily chart. It's in an upswing period seasonally. Mr. Market may tell us its true intention next week or so. 

IBP Netliq is down 5% from 346K to 328K (including the 10K to BOA). For accounting purposes, this Friday, Sept 1 is counted into next week. The options' value is up 13% from -170K to -195K. The leverage is up 7% from 89 to 96. The realized P/L is -$64,370. It's bigger than last week's -40K. The collected cash is only $3120. The total positions are 9 SCs and 11 SPs. The number of positions is the same but reversed in directions. I made 69 trades in the 4 days and paid $300 in commissions. 

 I didn't switch my bearish bias quickly after Friday's Jackson Hole reversal. My SCs were concentrated on this week. It was a double loss after being hit on the SP side last week. 

The two small accounts ended in the dump for the third month. The rally of last week pushed them back under the water again. The realized P/L is $20996. The total cash collected is $3285. IBP and TOS made $2154 and 1131 each. 

The lessons and plan will be addressed in my August review. 

A Volatile Week Ended Up 8-25-23

 The major indices ended up for the week after three down weeks. The NVDA ER and Jackson Hole generated some volatilities on Thursday and Friday. The majors are still under their 50 DSMA despite the bounce. The SPX downward slopping 20 DSMA is about to cross its 50 DSMA. The downside pressures remain unless the majors move back above their 50 DSMA. We may see rangebound or slightly up-price actions early next week. There are the PCE and NFP next Thursday and Friday.  

IBQ Netliq is up 3% from 336K to 346.5K for the week. The options' value is down 4% from -177K to -170K. The leverage is up slightly from 86 to 89. The realized P/L is -$40,059. It was a big hit since I had to roll out some DITM SPs with this downturn. The collected cash is $4,531. I made one BFC on Friday. I should have stayed out of the trade because of the Jackson Hole event. It was a volatile day that ended with a rally. The total positions are 11 SC and 9 SP, up 3 from last week. I made 77 trades with $243 commissions. I need to reduce the number of positions early next week. 

The drawdown in the two small accounts continued. I didn't keep my calm during the swings. I bet in the wrong direction. The positions are further ITM on both sides. The realized P/L is -3,185. The total cash collected is $2,243. IBP and TOS each made $1,211 and $1032 respectively. I should be more conscious of adjusting the positions next week. 

Lessons and Plans:

1. I should re-examine my assumptions about the direction of the market. Think of other possibilities beforehand.  My strong bias may be wrong more than half of the time.  

2.  Keep reminding myself of the professional standards and conduct. 

3. Continue practicing patience and a sense of timing. 

4. Set up the S/R levels before the market opens.  

 

 

The Third Week Down In Volatile August 8-18-23

 The major indices booked their 3rd down week in August. SPX closed below its 50 DMA. It's now back into the previous 4460-4300 balance area. It may be in a range-bound period seasonally. 

IBQ Netliq is down 4.8%, -17K from 353K to 336K. The selloff of the last 3 days dragged the numbers down. The options' value is up 10% from -166K to -177K. The leverage is also up 10% from 76 to 85. The realized P/L is $28,247. The cash collected is $1673 for the week. I gave up one BFP based on the rules. I made 96 trades for this week. It's still too high. I finally moved all RUT positions to SPX. SPX has more trading days but has a larger notional value. The total positions are 17 with 9 SC and 8 SP. The pullback benefit is over for this week. The balance is shifted to the long side. 

The SCs in the two small accounts are almost out. The realized P/L is $9419. The drawdown is flipped to the upside. I have 3 SPs are DITM. The total cash collected is only $1791. IBP and TOS received $1260 and $531 each. There was no BF trade based on the rules. The slump is well into its 3rd month now. 

Lessons and Plan:

1. The mindset of the professional trader is taking root.

2. Patience and calmness are slowly building up. I need to be more conscious during the work hours. 

3. Watch for the delta. I should adjust my positions from the further out positions first.    

2nd Down Week 8-11-23

 The major indices closed down for the 2nd week. The CPI report was slightly better than expected. It could have improved the sentiment. The August effect continues. 

IBQ Netliq is up 6% from 332K to 353K. The pullback helped to reduce some short calls. The options' value is down 11% from -179K to -160K. The leverage is also improved from 87-76. The realized P/L nicely recovered $35,172. The cash collected is $1670. I didn't have any BF trade based on the rules. I made 86 trades for the week. It is still too high for an average of 17 trades per day. The total positions are SPX 14 and RUT 2 at the end of the week. RUT is down two. I plan to eliminate RUT positions next week. The key is how to avoid the see-saw effect when the trend changes. 

The two small accounts got some relief from this pullback. The realized P/L recovered $19,768 for the two. The total cash collected is $2113. IBP and TOS received $1030 and $1583 each. TOS had one BFP win for $780. IBP is finally $589 cash positive now. It took 10 months to recover the ET 60K loss last September. It was a hard lesson that I should never forget.   

Lessons and Plan:

1. Remember to void quick trade during any major news event. The price actions tend to be volatile and deceiving. 

2. My current plan may not eliminate these DITM positions. It's like a see-saw. It breaks the balance when the trend changes. Should I just buy back everything and start fresh? 

3. Continue to set the price levels and practice patience. 

4. I am a professional trader. I must act like one. 

       

August Volatility Began 8-5-23

 The seasonally volatile August started on the first day of the month. The major indices booked a red candle for the first week of August. Vix is up from 13s to 17s. It's near the VAH daily. It appears a pullback or correction is underway. I will watch for the levels above and below to identify the trends. 

IBP Netliq is up 3.5% from 320K to 332K for the first 4 days in August. The options' value is down 7% from -192.6K to -179.3K. The leverage is down to 86 from 97. The realized P/L is -$986 during this wild week. The cash collected is $1775. It's less than the $500/day average. I didn't enter any BF trade this week. The total trades were 53 for this 4-day week. It's about 13 trades per day. The total positions are SPX 14 and RUT 4 at the end of the week. One side of the DITM positions will be off the balance when the trend changes again. 

The two small accounts improved some with this pullback. The realized P/L is $33370 collectively. IBP and TOS received $692 and $610. The total cash is $1302 for the 4-day week. I have to manage the inverted SCs and SPs from Friday's reversal. 

Lessons and Plan:

1. I must learn to change my bias quickly as the market changes. 

2. I have to be more objective with the price actions instead of holding my assumption. 

3. Be patient with the price levels and willing to miss some trades.

4. The market tends to be volatile during a trend change. 

5. Keep in mind that I am a professional trader. Act like one.  

A Muddy July 8-5-2023

 The major indices closed in rally mode for July. It matched the positive seasonality. The inflation data have shown some improvements. The Fed's 0.25-point rate hike didn't make much impact on the market. The market is in an overbought, greedy stage. August is seasonally a volatile or choppy month. A pullback or a correction could come by August.     

IBQ's Netliq for July increased only 7% from 307K to 320K, including the 10K withdrawal. The options' value is reduced by 2% from 197K to 193K. The leverage is down from 102 to 96. It's good to see it below 100. The realized P/L is only $3872. It's more like a B/E. The collected cash is $10771, excluding the $1600 monthly interest. The number of contracts is from 20 to 19. It could be more improvement. The total trades were 350 for the month. It's an average of 17.5 trades per working day. Each trade usually includes two transactions unless one is expired and worthless. The commission cost is $1373 for the month. It's 12.7% of the collected cash. I need to watch out for over-trading. 

The two small accounts are still in the mud. The cost of time and lost opportunity are worsening. The realized P/L is -$28684. It's worse than June's $25K. I kept rolling up the positions little by little. I may be too conservative in my risk control. IBP and TOS collected $4382, and $3391 for the month. They are about 50% less than the average earnings. 

Lessons and Plan:

1. I continue to improve my self-awareness and patience. 

2. Identify the trends and levels in daily practice. 

3. Keep working on my self-discipline. 

  

The Bulls In Control After FOMC 7-28-23

 The major indices booked the third consecutive weekly gain. FOMC raised the rate by 0.25% as planned. The market reacted wildly but ended up. The real tell was the day after the meeting. I tended to underestimate the aftermath effects. 

IBP Netliq is up 3.5% from 310K to 321K. The options' value is down 3% from -196K to -190K. The leverage is down slightly from 98 to 95. It's still elevated from the 70s in May. The realized P/L is 6.6K. The collected cash is $2083. I had one BF scalp win. The one open BF from last week was closed too. I moved 1 RUT SC to SPX SP. The delta for both SPX and RUT is in line now. I made 81 trades for the week. It's about 20 less than the last few weeks. The total positions for SPX and RUT are 15 and 5, the same as last week. There were some closes, opens, and rollings. Overall, it was a muted week with some improvements. 

I paid $10K back to ETQ for July. That leaves the total debt to $148K between QIIs.

The two small accounts are still in the dump. There were hardly any pullbacks. They continue to book paper losses. IBP collected $900. TOS got only $618. The total is $1618. The deepest positions at 4300, and 4330 are -6.3% and 6%. The lost earning potential is about $13K a month. The weakness of no stop-loss continues to cost me dearly. 

Lessons and Plan:

1. I am more aware of my emotions and anxiety. 

2. I am more patient waiting for the price levels and the time of the day. 

3. My weakest link to my trading performance is to follow the stop-loss rule.

4. It's a powerful statement that I am a full-time, professional trader. I must follow professional standards and practices.  

The Market Held Up Before FOMC 7-+21-23

 The major indices were up three days before pulling back in the last two days of the week. Overall, it was a positive week for the indices with signs of weakness. FOMC's rate decision is next Wednesday. It's expected the Fed will raise the interest by 0.25 points. Still determining how the market will react to it. 

IBQ Netliq is flat at 320K for the week. The options' value is up 2% from 192K to 196K. The leverage is up slightly from 94 to 98. The realized P/L is $4.7K. It didn't cover the -7.7K from last week. The collected cash is $2,780. I had one BFP. That has not been closed. The SPX delta is back in line. I transferred one RUT 1630 SC to SPX 4655 SP. I need to change 1-2 RUT to SPX to bring the RUT delta back in line. I made 103 trades this week. 12 of the trades were before this week. 90 trades are too many for a week. The total positions are down from 21 to 20. 

There was not much improvement for the two small accounts. The total cash collected is $$2,321. TOS made $662. IBP received $1,659. I made a BFP trade in IBP. I didn't follow the stop-loss rule. Now the positions are inverted. The slump is 240 points away now.      

I transferred $10K back to ETQ for July. It's $20K short to pay off 2022's loans. The total shortage is still $158K from the beginning.  

Lessons and Plan:

1. I paid more attention to the price levels. 

2. I improved my calmness and self-awareness. 

3. I have no decisiveness in taking stop-loss. I keep looking for alternatives to void stop-loss. This must change. Remember: emotions are out, and stops are in. 

The Market Rallied On Better Inflation Data 7-14-23

 The major indices popped on better-than-expected CPI and PPI data. The inflation is cooling off after more than one-year rate hikes. SPX is above 4500 for the week. RUT is holding 1930 now. The majors are in their new ranges now. Are we going to see some consolidations or pullbacks next week?

IBQ Netliq is down slightly from 322K to 319K. However, the options' value is up 4.7% from -183K to -192K. The leverage is up from 90 to 94. I may need more further dated hedges to bring it down. The realized P/L is -$7.7K. These DITM SCs are a drage. I was aggressively adjusting my positions to keep the delta in line. The collected premiums are only$1556 for the week. I didn't have any BF scalps because of the position rules. There were 101 trades this week. Some of them were old rollovers. It's still too many trades. The total positions were reduced from 23 to 21. 

The two small accounts are back in the slump with this rally. The total cash collected is only $574. IBP got $163 from rolling. I tried one BF. It didn't get expanded. TOS collected $411. This drawdown has been over one month now. 

Lessons and Plan:

1. I need to practice more breathwork during my meditation.  I should focus on the present with conscious intentions. 

2. The issues of calm and patient are the same every week. I am making progress little by little. 

3. My goal is still to eliminate these DITM positions by the end of August.   

The Drawdown Continues 7-7-23

 The major indices closed in the red for this July 4th holiday-shortened week. The price actions were weaker, random, and choppy. The market may be concerned about the Fed's two more rate hikes. Seasonally this is not a bearish period. Only the price action will tell. 

IBQ Netliq is up 4.5% from 308.6K to 321.9K. The options' value is down 5.8% from -194.9K to -183.6K. The leverage is down 8.8% from 98 to 90. The realized P/L is -$23.1K. That is the main area of the drawdown. I had to roll out several DITM positions. The SPX delta is finally in the neutral area now. The collected premiums are $3700, plus $1600 of monthly interest. I had one BFP win. I mistakenly left a RUT RR order open overnight. It got filled the next morning with $1500 premiums. Luckily the SP side is closed today. The total cash is $5299. I made 46 trades for the week. It's about 11.5 trades per day. The number of positions increased by 2 on each side. I switched one RUT SC to SPX SP. The timing was off. It was part of my plan to change all RUT positions to SPX.  

The two small accounts had some relief this week. These adjusted SPs were closed out. But they are still underwater. The total cash collected is $1653. IBP made $1330 with 1xBFP. TOS got only $323. My lack of willpower to stop losses cost me dearly. 

Lessons and Plan:

1. Watch for the price action and critical levels. They are the keys to the direction of my bias.  

2. Stay patient and calm. The daily meditation is a big help. 

3. Keep the forest insight. Have a road map for my goals of eliminating the DITM positions.           

A Week Of Rally 6-30-23

 The mid-June pullback was short-lived. The major indices rallied in the week of the month and quarter end. They ended the week by challenging the mid-June highs. It will either be a break out of the 2023 high or a double-top pullback. My accounts suffered drawdowns with the rally for the week.  

IBQ Netliq is down 3.8% from 320.7K to 308.6K. The options' value is up 9% from -177K to -195K. It wiped out last week's gain. The leverage is up 11% from 87 to 98. The realized P/L is up $9.2K. The SC positions were rollout and further deep ITM. The premiums collected are only $1430. I didn't trade any BF according to my rules. I made 103 trades for the week. That was about 20 trades per day. Some of the trades were executed before this week. The number of my positions decreased while the delta stayed negative. 

June was the first monthly drawdown for IBQ. The realized P/L is -$20,656. The cash collected is $10,318 with about $1,600 in interest. The actual premiums are about $8.7K. I didn't follow my plan to act quickly and decisively based on the price actions. 

The two small accounts went deeper into ITM for the week. The pullback of last week was shallow. The total cash collected is only $1,592. TOS got $559. IBP made a little more than $1K. My mistake cost the losses. 

The small accounts booked a drawdown of -$25,551 for June, the largest in 2023. The total premiums collected are $5,117 only. TOS and IBP each got $$2,517 and $2,600. It was a waste of time and opportunity. I will enforce a stop loss of 1-2X premiums from now on. 

Lessons & Plan:

1. Be aggressive and decisive in position adjustments. I often take more than one adjustment for a position. I should measure the levels and make adjustments accordingly. 

2. My plan for eliminating these DITM positions by the end of July is not likely accomplished. My new target is by the end of August. 

3. Keep my goals in mind and act accordingly. I need to calculate the positions' values. Then break the goal into small steps.  

      

A Week of Stop Drawdown 6-23-23

 The major indices pulled back this week after several weeks up. The overbought conditions are eased some. SPX is way above its 20 DMA at 4300. RUT is still legging. It may come back to retest the 200 DMA. The seasonality is playing out. We may see the pullback continue into next week. 

IBQ Netliq stabilized at 320K from last week's 309K. This was a holiday-shortened week. The options' value is down 10% from -197.7K to -177.5K. The leverage is down 11% from 98 to 87. The realized P/L is 2.1K, better than -22K last week. The premiums collected are $2,477. I had one BFP worked out. I made 79 trades in 4 work days. That's about 20 trades per day. It's a lot more than I expected. The positions were increased overall. My plan for the week was to use the B/P to speed up the reduction plan. Altogether the drawdown was stopped this week. Adjusting the delta positions after a breakout often takes 1-3 weeks. 

The two small accounts are still underwater. I split each SC into two in an attempt to speed up the unwinding process. It worked better than the old method. Each account only got about $130 for the week. It's a waste of time and opportunity. 

Lessons and Plan:

1. I marked levels each morning from the plan of last week. 

2. I took a quick meditation in the mid of the day. I remind myself to stay calm and focused. 

3. I will continue to work on my patience. Knowing market time helps to ease my anxiety.    

 

The Best Weekly Rally Of The Year 6-16-23

 SPX finally broke above 4410. It's higher than last August's high of 4330. S&P futures touched the weekly value area high. NQ passed that level two weeks ago.  RUT is legging behind. The small caps usually are the leading indicator. RSI points to the market being at the overbought level. The Fear and Greed Index is 82, which is an extreme greed level. The market may need to take a breath or P/B soon. Only the price action will tell next week. 

My IBQ Netliq suffered a big 11% drawdown from 34.8K to 3101K. The options' value jumped 20% from -160K to 198K. I didn't adjust my SCs quick enough when the market was rallying. The leverage also increased by 21% from 77 to 98. The realized P/L is down $22.8K. It's worse than last week's -17.1K. The collected premiums are only $1545. I didn't trade any BF this week. I made 80 trades for the week. It's about 16 trades a day. I reduced SPX SC from 6 to 5, and SP from 5 to 4. RUT added 2 SCs from 3 to 5. It was a poorly traded week. I haven't experienced such a drawdown in recent months. 

The two small accounts are deeper ITM this week. IBP collected $586. TOS had $485. The total is only $1071 for this week. I had to break the DITM SC from 1 to 2. My plan is to bring the strike prices up to exit half of it first.  

Lessons and Plan:

1. I didn't have a clear plan and levels for each day. 

2. I relied on hope and fear of reversal for my trade decisions. 

3. My old habit of waiting to see affected my ability to adjust my delta quickly. 1. Consider breaking down the technical jargon for readers who may not be familiar with the terminology used. This will make the writing more accessible to a wider audience.

4. Focus on developing a clear and structured trading plan with specific levels for each day. This will help you make informed decisions and avoid relying on hope and fear.

5. Make a conscious effort to adjust your delta quickly and avoid waiting to see the market direction. This will help you react to sudden changes and minimize potential losses.

The Break Out Continues 6-9-23

 The breakout continued following the seasonal pattern. All the major indices closed in green this week. SPX made a 52-week closing high. It closed slightly higher than the August high. VIX closed at a low 15s. There are some major news events next week. It may be a volatile week. 

The IB Netliq is up 0.5%, from 342.4K to 343.8K for the week. The options' value is slightly up from 158.7K to 159.5K. The leverage is flat at 77ish. The realized P/L is negative, -17.1K. I have had several SCs DITM with this rally. The collected cash is $3373 with one BFP. I made 82 trades this week. It's an average of 16.4 per day. It's way too many. SPX reduced one SP. RUT is one SC less. Overall it was a flat week. I feel that I lost some of my mental edge. 

The two small accounts didn't get out their DITM SCs with this rally. I only collected some premiums with each rollout. IBP got $391. TOS collected $505. It was a disappointing week for the two accounts. I may add the 0DTE strategy back after FOMC next week. 

Lessons and Plan:

1. I still have the urge to enter trades despite the timing. 

2. I should try to recognize urges. Ride with the urge but do not act on it.  Overtrading is mostly caused by urges. 

3. I need to remember to practice short meditation during the day. It may help me to be patient.  

4. I remember the active periods. I need to have the patience to wait for them. 

   

A Break Out To The Upside 6-2-23

 After the debt ceiling was resolved, the major indices finally broke out to the upside. SPX broke the two-month range of 4070-4200. It looks to retest last August's high of 4325. RUT also broke the range of 1700-1810 from last March. It crossed its 200 SMA for the first time in 3 months. Seasonally the rally may last till the mid of June.  

The IB Netliq booked -8K from 350K to 342K for the week. I couldn't adjust my positions aggressively since I had to obey the -1+1 rule. The options' value had a bad week, up 7.5% from -146K to -158K. The leverage is up from 71 to 76. The realized P/L is 13.4K. The collected cash is $2057 for the 4-day week. The last two items provided a little comfort. I made 61 trades for the week. SPX positions increased one on each side from 5 to 6. RUT reduced one SP from 5 to 4. The SC is still at 3. The account suffered a little setback overall. 

The two personal accounts performed fair for the week. IBP received $2441 while TOS collected $3489. The total cash collected is $5930 for this 4-day week. But both accounts carried an SC DITM into next week. This BF rolling strategy does not work well in any large movement.  

Lessons Learned and The Plan for next week

1. Being disciplined doesn't mean no setbacks. Like I followed the -1+1 rule. I couldn't adjust my positions aggressively during a trending day. Discipline can prevent me from over-trade.  

2. Being patient could come from realizing the time and movement of the day.

3. I need to be more consistent in my morning preparations.  

4. I will stay the course eliminating the long-term positions in IBQ.

The Debt Celling Is Still Pending 5-26-23

 The major indices had mixed close for the week. NQ and SPX had a great week. Dow and small caps were down for the week. I'm curious how the divergence will unfold. The debt ceiling issue is still pending. The market seems to believe it will be resolved. QQQ and SPX ended with their weekly new highs. 

IB Netliqs experienced ups and downs. It ended up at a new high of 350K, up 3% for the week. The options' value set a new low of 143K from 152K, down 4.5%. The leverage is down slightly from 74 to 71. It's another new low. The realized P/L is only $3345. The collected cash is $2345. I refrained from entering BFs as planned. The total trades are 75 this week. SPX reduced 1 SC only. RUT had 1 less on each side. The account is in the right direction. I need to keep the momentous going despite the wild swings.  

The two small accounts didn't get much done. IBP had one BF closed. It collected $1147 for the week. TOS had no BF. It had $150 only. The total cash is $1297 for the week. There are two BFs carried into next week. I am rethinking using a different strategy for these two accounts. 

Lessons Learned and Plan 

1. I started to draw the levels of EM in the morning. It helps me to get a bigger picture of the day.

2. I use the S/R lines and EM for my entries. 

3. I am more aware of my emotions during the trading day. 

4. I use the time of the day and price levels for my patience. 

A Positive Week Of Return 5-19-23

 The major indices closed this week in positive territory. They broke 2-week losing strikes. SPX is on the edge of breaking out the range of 4050-4200. RUT is legging from the other indices. Despite the debt ceiling and inflation, the trend has been positive. 

IB Netliq is up 2% from 333K to 339K. It wasn't a spectacular week. The options' value is down 2.5% from 156K to 152K. The leverage is down from 87 to 74. The number of positions didn't go down strangely. The realized P/L is $8865, smaller than last week's $22K. The collected cash is only $1248. I tried 1 BF. I got the directions wrong and failed. I made 61 trades with hedges for the week. The market was relatively quiet. The overall positions are increased across the board. 

The two small accounts worked fair. IBP collected $1768. TOS got $4002. TOS had 2K carried from last week. The total for the week is $5770. They both are under the water on the SC side with the unexpected rally.     

Lessons and Plan:

1. Continue to work on my patience with a sense of time frame; 

2. Reduce my DITM positions;

3. Practice meditation. Stay present;

4. Working on my emotional recognition;

Still In The Range 5-12-23

The major indices closed slightly lower except the tech-heavy NQ for this week. They traded within last week's range other than NQ. SPX has been in the 4170-4050 field for six weeks now.  RUT is in the 1700 to 1815 range for 9 weeks. We don't know when and where they will break. But they will. I can only follow the price actions objectively. 

IB Netliq is up 2.5% from 325K to 333K this week. The options' open value is down 9% from 174K to 156K. The two numbers set records of high and low for two years. The progress continues moving towards my goal. The leverage is slightly up from 84 to 87. The realized P/L is $21879. It reflects the reduction of the options' value. The collected cash is $1922. I made one BF hedge today for about $900 profit. There was no BF SP left before I entered this one. There were a total of 79 trades for the week. The average is 15.8 trades per day with hedges. I reduced 1 SPX SC, 1 SP, and 1 RUT SC. It was a good week overall. I followed my plan and the rules. The rangebound market helped too. 

The two small accounts performed well with the -1+1 rule this week. I had two BF double wins in each account. IBP collected $4110. TOS had $2048 without today's double BF figures. The total cash is $6158 for the week. I followed the -1+1 rule. 

Lessons and plans: 

1. My impatience is related to my FOMO and sense of time. 

2. I will have to roll out most of the DITM positions next week. 

3. Practice meditation during work hours if I feel stressed. 

      

A Rangebound Week 5-8-23

The major indices had a volatile week. The main catalysts were FOMC and NFP on Wednesday and Friday. A selloff on FOMC day followed by NFP pop. The major indices ended this week with small losses except for QQQ. The first part of May would be volatile historically. My read of the market is leaning to the downside. I will objectively follow the price actions. 

IBQ Netliq is up 7.5% from 301K to 325K. The options' value is down 12.5% from -199K to -174K. The leverage is down from 101 to 84. It's the lowest level as far as I can remember. The realized P/L is $24,453. It's mainly the result of reduced option value. The collected cash is $2,650, including $1300 monthly interest. I made a total of 66 trades for the week. That is an average of 13 trades a day. It's probably on the lower side. I reduced 2 SPX SCs for the week. The SP positions were rolled a little closer. Overall, it was a good week. The range-bonded market and reduced positions contributed to the results. 

The 2 personal accounts were unwinded to 0 on Wednesday. They were in the mud for a week. I had double BF wins on Thursday. The NFP rally today forced me to roll SC BFs to next Monday. I wasn't able to expand the SPs this morning. TOS and IBP collected $3080, $2866 each. The cash total is $5,946 for the week. 

Lessons Learned and Plans:

1. Continue to set EM levels and trade accordingly;

2. I should look for an options calculator that can calculate combos. 

3. I am experimenting IF Butterflies. The base theory is that one side will be OTM at EOD. The strikes must be not inverted. I will be willing to let a DITM side go if it's a trending day. I should not trade this strategy on any major news event. 

4. Obeseve and recognize my emotions and stress levels. Practice short meditation when I am under stress during the day. 

              

A Losing Week 4-28-23

 The slow-moving, low volatility of the market finally ended this week. The major indices had a two-day selloff and a two-day bounceback. The big guys were preparing for FOMC next Wednesday.  The technical indicators pointed to the downside early in the week. It's like too many people stayed on one side of a boat. The market flipped up in the last two days. My positions were heavy on the downside. I got caught with my pants down. Luckily the rule of -1+1 prevented me from adding more short positions.    

The IB Netliq is down nearly 3% from 304K to 296K. The options' value is back above 200K from 195K. The leverage is down because of the lower VIX. The realized P/L lost $1380. The collected cash is only $670 for the week. It's Ok because I was following the plan to reduce my holdings. 

The realized P/L for April is $23K. The premiums are $14,316. The positions are SPX C8, P6, RUT C2, and P3 at EOM. I switched 2 RUTP to SPXP. The overall positions are fewer than before. 

The two personal accounts booked a loss of $8,200 for the week. Each account has an SC underwater. I made some mistakes. TOS collected $1,254 cash. IBP did better with $3,340. The total premiums are $4,600 for the week. 

For April, the total realized P/L is $8970. TOS collected $4,932. IBP got $5,916. The total cash for the two accounts is $10,848. It's a surprise the two small accounts collected 71% cash as IBP in April. The two small accounts traded much less than IBP. It proves that trading more doesn't mean making more. 

Plan for next week:

1. IBP must continue to focus on reducing the ITM positions. Cash generation is only the 2nd goal.   

2. Personal accounts must follow the rule of -1+1 and reduce risk. 

A Flat Week 4-21-23

 The major indices ended flat for the week. The dip buyers have been able to hold the market. The support levels were tested and weakened. SPX had a slight red week after five-week gains. It's holding 4100 for now. RUT was up in the lower B band. The daily charts formed higher lows and lower lows. The earnings season is in full swing. Earnings could be the main factor for the market. Seasonally this is a bullish period for the market. I will keep the trend in mind as the forest. 

IB Netliq is up 9% from 294K to 324K. I transferred $20K back to ETQ. The netliq closed above 300K for the first time in years. The options' value ended below 200K for the first time in at least 5 years. The leverage is down 9% from 123 to 111. VIX stayed at 19ish. The realized P/L is up $31K. The collected cash is only $2K. I was following the -1+1 rule. I reduced SPX 4 SC and 1 SP, RUT -1 on each side. That was my plan for last week. I feel good I did it.  

The calm market is a major factor in the recovery. The BF hedge strategy helped to build a large cash reserve. The cash position boosted the netliq. The reduced position added B/P. I have switched 1.5 RUT to SPX. SPX has more DTEs. It will be easier and quicker to reduce my positions. I will stay humble and cautious.     

The two small accounts performed fair for the week. I followed the -1+1 rule mostly. TOS collected $2.3K. IBP got $2.2K. The total cash premiums are $4.5K. Each account has one position left. 

Lessons learned and plan ahead:

1. Patience is still my shortcoming. My daily meditation helps me to recognize my impatience. 

2. It takes time to change and rebuild a habit. I need to keep working on it. 

3. Don't adjust a position unless there are 2X losses and 10-point gains. 

4. Manage the risk. I can only control my position sizes. It's my safety net.  

5. My plan for the next 30-60 days: eliminate all of the DITM positions. I will reward myself with one month's vacation or an SUV once I achieve the goal.    

A Wild Week Ended Up 4-14/23

 The market was waiting for CPI on Wednesday. It was choppy before the report. The major indices swung up and down for the last three days after CPI and PPI. They ended up for the week. SPX is up five consecutive weeks this year. Dip buyers showed up at critical levels every day this week. I didn't perform well for the last three days. I was overreacting to these swings. I rolled my positions too often with emotions. 

The IB Netliq is almost unchanged at 295K. It broke above 300K as a milestone on Wednesday and Thursday. The leverage is down by 5 points from 128 to 125. VIX is below 20. The realized P/L is $8.6K. It recovered from last week's -$3.1K. The collected premiums are $4.7K with too many open positions. I added 3 SCs to the total of 11. SP stayed at 7. RUT added 1 SC to 4. The SP is the same at 6. It was the same problem with making too many small rolls. My positions increased when the swings got bigger. 

TOS finally unwinded all positions. I made one BF for $1K this week. It collected $1.1K for the week. IBP has one more SC left. It made $290 only. I tried one BF but got the direction wrong. It was OTM. 

Lessons Learned:

1. I need to slow down and stay cool when the market is volatile.  

2. I forget to recognize my emotions when the market is hot. 

3. I won't make position adjustments without at least 10 points gains. 

4. I will adjust a position when the loss is 2x or more of the premiums.   

A Week Of Rangebound 4-8-23

 The major indices closed relatively flat for this four-day week. RUT is the only one down quite a bite. It usually is a leading indicator. I will keep it in mind. Friday's NFP was in line. But the regular session is closed for Good Friday. Seasonally April is a good month for the bulls. My main goal is to manage my risk levels. 

The IBQ Netliq is 1.8% from 278K to 283K for this holiday-shortened week. The leverage is down 5 pts to 128 with the lower VIX. The realized P/L is -$3.1K. I made too many small RRs. The collected premiums are $6.9K with 4 open positions. I followed the -1+1 rules mostly. I tried to make 1K on each side. It was too aggressive since I had open positions. 

The two personal accounts are still in the mud. I may have only a couple hundred dollars gain for each account. I am in DC to visit the museums this weekend. I don't have exact numbers. I need better trade management for these two accounts. 

Lessons Learned:

It's similar to the previous weeks. It takes time and effort to change a habit. 

1. Watch for the price levels and time of the day to engage my trade. 

2. Notice and recognize my thoughts and emotions. 

3. I should set up requirements for RR. It may be 10 point minimum, 2X for the premiums received.  

4. I shall continue to convert my RUT positions to SPX. It's easier to manage the risk in SPX with much longer trading hours and notation value. 

The Rally Continues 3-31-23

 The major indices closed up for this week. They booked a positive week, month, and quarter for 2023. The economy has been resilient despite the mid-size bank crisis and inflation issues. The large and medium indices are firmly above their 200, and 50 DMAs. The small cap is the lagging sector. The seasonality favors an up trend until May. 

My IB Netliq closed a new high for the last 3 years. It's up 9% from 260K to 277K for the week, including the 10K sent back to ETQ. The options' open value is down 17K from -246K to -229K. The leverage is also down from 140 to 133. The realized profit is $19K for this week and $94K for the month. The collected cash is $6K for the week and $23.9K for March. It's a good week and month. I should manifest outstanding returns. 

The small account got in trouble with BF hedges. It booked a -$2.5K loss. TOS and IBP collected $3823 and $3519 each. It's a total of $7,342 for March. They each gained less than $1K per week for this month. Each account has one SC underwater now. The rally is near the top now. I will hopefully unwind the two ITM positions next week. 

Lessons Learned:     

1. The meditation is going well with the Balance App; I am learning it in a structured way. 

2. I am still working on my patience. Wait for the time and price levels to pull the trigger.  

3. I must consciously calculate the options' price levels and delta.

 

  

   

A Week of Recovery After The Bank Dramas 3-24-23

 The major indices recovered from last week's bank drama selloff. The tech-heavy NQ lead the pack again. It stayed above the 200 WSMA. SPX and YM closed right below the same WSMAs. They reclaimed their 200 DSMAs except for the small-cap. RUT has many small and medium-sized banks. FOMC generated some volatilities. The rate hikes are close to the end. There is more clarity from the Fed for now. 

This week, the IB Netliq is up 14% from 223K to 260K. It's a new high for the last 3 years. VIX is down about 10% from 25.8 to 23.4. The leverage is also down 18.5% from 172 to 140. The realized P/L is $42.3K. The collected premiums are $7.9K. I was lucky to hit BF hedges every day with the -1+1 rule. I reduced the SPX C from 10 to 4, and P from 6 to 4. The RUT positions are C-1 and P+1. I was quick in adjusting deltas which paid off. The market's rangebound helped too. 

The two small accounts performed well too. These ITM positions were unwinded. TOS collected $3K with the BF hedges mainly. IBP got $3.9K cash. I traded 0 DTE on Thursday. I failed to enforce my S/L rules again. It was only exited in TOS on Friday. That caused a missed BF opportunity today. 

Lessons Learned:

1. My daily meditation helps keep me calm. It reduces my stress during work. 

2. I checked my expiring positions every day this week. 

3. I must enforce the stop-loss rules if I want to trade 0 DTE again. 

4. The BF hedge works in the current market conditions. It may stop working when and if the market condition changes. I must prepare for it. 

5. Keep my current position under control. Don't adjust positions often. Act like a sniper.   

The Bank Drama Continues 3-17-23

 The regional bank fallout dominated the market this week. Credit Swiss and two US regional banks got into trouble. The major indices closed with mixed results for the week. DJ and RUT are down. NQ and SPX are up. The tech-heavy NQ surprisingly performed the best. I am trying to figure out what the reasons are. FOMC will be the focus of next week. There could be more bad news from banks. It will be another volatile week. 

The IB Netliq is up 12% from 197K to 223K. VIX is slightly up from 24 to 25.8. The leverage is down 16% from 205 to 172. The realized P/L is $21.9K.  The collected premiums are only $1870. I didn't see an SC ITM right above a BF that caused a $4000 assignment last Wednesday. I even checked my IB position list but didn't see it. The open options' value is down 18% from 300K to 277K. It was a better week overall. 

The two personal accounts are still in the mud. I am getting close to unwinding the ITM positions from the week before the last. TOS only added $100 for the week. It's a total waste of time. IBP had two successful BFs this week. It collected $1.9K for the week. 

Lessons Learned:

1. My portfolio heavily depends on market movements. The ultimate solution is to eliminate these longer-term ITM positions. I must keep this goal in mind. 

2. I followed the -1+1 rule this week. It was too volatile to trade the 10+5 BF as planned. 

3. Patience and Time are my constant goals.       

An Eventful Week Of Selloff 3-11 -23

 It was an eventful week. Jey Powell testified in both Senator and House. He sounded a bit more hawkish. The inflation data was persistently high. The troubled Silicon Vally Bank caused a panic selloff in the financial sector. It dragged the broader market down on Thursday. Friday's NFP number is better than expected. It's another inflationary factor. The major indices booked the worst week so far in 2023. The March Madness seasonality is in play now. We are likely in a period of volatility until CPI, and FOMC settles down. The major indices are below their 200 DMA. Overall, the market is in a bearish mood. 

The IB Netliq is down 13% from 249K to 197K. That includes the 20K loan paid back to ETQ. The leverage is up 27% from 149 to 205. The VIX is up 19% from 19.4 to 23.9. The realized P/L is -$7K. There are $4,640 premiums collected plus about $1K of interest. The open options' value is up 11% from 267K to 300K. I underestimated the risk of J.P. and SVB. 

The two personal accounts could have performed better too. I couldn't exit the ITM BF positions. TOS collected $790. IBP got $540 for the week. The total collection is only $1,330.  I will reevaluate if the BF hedge strategy suits my smaller personal accounts. It may work in low volatile conditions. 

Lessons Learned:

1. I must adjust my delta positions more aggressively when the volatility increases. I reduce one SPX on each side and one RUT P at the end of this week. It wasn't enough to avoid a red warning. I will reduce my exposure more next week.     

2. Trade the price actions and levels objectively. Hope is not a trading strategy.

3. Be patient. Wait for the levels and time frames. 

4. I will reduce the BF hedges in the small accounts. 

5. I may expand the BF strategy from 10X to 15X in IBQ. Expand 1K and 0.5K on each side. Therefore, at least one of the two will be out the next day. It will be a minimum of $500 realized gains the next day. It has to follow the rule of -1+1. 

The Week Of Turn Around 3-3-23

 All the major indices had a positive week. SPX retested its 200 DSMA and bounced from there. RUT didn't even come to its 50 DSMA. It held better than the others. The sentiment turned positive. The daily downtrend is still intact for SPX. The majors closed below their 20 DSMA. Seasonally the first half of March can be volatile. It's something to keep an eye on. 

IB Netliq went up 10% from 224.7K to 249.7K. It's a new high for the last 2 years. The leverage was reduced from 174 to 149. VIX is below 20 at 19.4 now. The open options' value is also down 7% from  286K to 267K. It's the lowest level for 2023 so far. The realized P/L is 63K for this week. It covered the 15K loss of last week. The premiums collected are $4.2K. Most of it is from the BF hedges. I had to skip one day's BF hedge based on the -1+1 rule. It was a good week overall.  

The two personal accounts worked with the BF hedges. The TOS account collected $3.2K cash. The IBP got $3.3K cash. The total is $6.5K. The hedges in both accounts got ITM with the rally today. I will have to unwind the two positions next week. 

Lessons Learned: 

1. The BF hedges continued to generate most of the income for the week. I followed the -1+1 rule most of the time. I should have applied the rule strictly on Thursday's reversal. I had one side that didn't exit.

2. I watched the number of positions closely. It's the mean of risk control. The week ended with one more SPX SP and one more RUT SC. I will resolve it by early next week. 

3. Patience is still my weakness. I made a couple trade mistakes on Monday. I rolled way too early for the 4040 SP. It could have been OTM by the end of the day. 

4. I must calculate the options' values in Delta, Theta, and Gamma instead of feeling them.  

Changing Trend? 2-24-23

 The major indices closed in the red for another week. It's the worst week for SPX so far in 2023. The sentiment is not panic yet. There are still buyers buying the dips. SPX is testing the 200 DMA and 20 WMA. We are getting into March Madness seasonally. Be prepared to see more volatility near term. 

The IBQ Netliq is down 5% from 236K to 225K for this 4-work day week. The realized P/L is -$15.7K v.s. $96K last week. This pullback hurt my SPs. I was able to reduce the SPs from 9 to 7. The leverage is up 6% from 163 to 174. VIX is still in the 20 -22 range. The premiums collected are $3200. Most of it is from BF hedges. I skipped one of the days based on the -1+1 rule. I like the steady income increase. 

I almost unwinded the ITM positions from mid-January. I applied the BF 5X hedges with the two small accounts. The rule is also -1+1. I also paid the $20K back to BOA from TOS. TOS collected $2K mainly from the BF trades this week. IBP collected $1.8K using the same BF strategy. Things are improving. 

Lessons Learned: 

1. The butterfly expansion strategy (BF 5X) works in current market conditions. I will keep trading it until it stops working. It's one more tool in my trading toolbox. 

2. My daily meditation continues to improve my state of mind. I added a new app called Balance to learn more about meditation. 

3. Pay more attention to being patient. The patience is bitter, but the fruit is sweet.  

4. The cash buildup has helped my netliq and B/P dramatically. 

The 2nd Week Of Pause 2-17-23

The major indices closed slightly down for the 2nd week. They have shown strong resilience after the hotter-than-expected CPI and PPI. They finally gave in to a FED governor's hawkish speech on Thursday. The uptrend is still intact despite the pullback. MACDs are turning negative. I will watch if the retreat continues next week. 

The IB Netliq is up 13.6% from 204K to 236K. The leverage is down 19% from 203 to 163. The VIX stayed in the 20 to 21 range. The market has been calm so far this year against the seasonality. The realized P/L is $96K as some long-term ITM positions have been rolled out. It's the best weekly P/L I have remembered. The premium collected is $2,829, less than last week's $5.3K. I have followed the rule of -1+1. 

The personal accounts got further relief from the pullback. I was able to close 2 of the SC positions in TOS. I have rolled all of the SC positions up closer to the money. TOS collected $910 with the roll-ups. IBP added $720 for the week. I plan to trade the BF 5X hedge strategy with the two small accounts once these ITM positions are unwinded. It should allow me to book 1-3K per week for each account. I have to follow the rule of -1+1. 

Lessons Learned:

1. I need to learn to calculate the delta values when I plan to roll a position. I currently guess the values based on my experience. 

2. The daily meditation has really helped me to stay calm and clear mind. 

3. I followed my rules of -1+1 better than last week. 

4. I am more patient in waiting for the desired time frame to enter my trade.  I get my hands on other things to ease my anxieties while waiting for the opportunities. 

A Week Of Pause Or Trend Change 2-10-23

 The major indices closed down for this week. They are mostly inside last week's range. It could be a pause after the incredible January rally. They are above all of their key MAs. The market is waiting for more inflation data after the last FOMC rate hike. The expectation is that the worst inflation period is over. This week's pullback provided some relief for my underwater positions. 

The IB Netliq is up from 207K to 224K, a 7.5% increase. I paid 20K back to ETQ this week. The realized P/L is - $6366 with some rolling out positions. The collected premiums are $5,317. I assume the increased cash position helps the netliq and B/P. The leverage is down about 5%, from 212 to 203. VIX stayed around 20. The market and my netliq remained rangebound. I was able to reduce 2 SPX SCs and 1 RUT SP. 

The personal accounts got some relief in the last two days. I had to transfer 20K to TOS from BOA at the beginning of the week. The BP was down to 19K at that time. I should be able to transfer it back in 1-2 weeks. IBP collected $600, and TOS got $1017. It was a lot of effort to get the $1.6K. My undisciplined action continues dragging me in the mud. 

Lessons learned:

1. Practicing meditation daily helps me stay calm and collected most of the time.  

2. I followed my -1+1 rule sometime and failed a couple of times. Obey the rule may not benefit me all the time. It keeps me in line and out of trouble. 

3. Recognize my emotions during the day. Don't take impulsive trade when my emotions are high. Take a break before taking action.   

   

The Rally Continues After FOMC Rate Hike 2-3-23

 FOMC announced another rate hike of 0.25% on Wednesday. It's the smallest increase in this rate cycle. There was no surprise to the market. The market popped after the initial dip. The FOMC reaction usually is a market reversal the next day. It didn't happen this time. The major indices continued the rally the following day. AAPL, AMZN, and Google reported disappointing earnings after the market on Thursday. The NFP on Friday morning was much higher than expected. The new hirings were 517K v.s. 193K estimated. It's an inflationary factor. The market didn't react very negatively. There was only a 1% pullback for SPX at the end of the day. The bulls are still in control for now. 

The IB Netliq is down 9% from 226K to 206.7K for the first 3 days in Feb. The leverage is up 9% from 189 to 212. VIX is still below 20. The collected cash is $4K for the same period. The realized P/L is -$52.8K. The losses include about 30K for rolling some old positions. It's a poorly managed week during the strong rally. I wasn't quick enough to adjust my positions after FOMC. I was afraid of a sudden reversal as many times before. 

The two personal accounts slipped deeper into the water during this week's rally. I was too cautious to adjust these underwater SCs. My concern was the B/P and FOMC. The TOS is down -$355, and IBP is up $63 for this 3-day account week. The lost time opportunities and B/P are much bigger than the $ amount. I had to transfer $20K from BOA to TOS to shoe up its B/P. My weakness repeatedly cost me dearly. I will put myself on time-out once I am out of these positions. It may take two or more weeks. 

Lessons Learned:

They are the same bad habits that take time to correct. I will keep working on them until they are corrected. 

1. Be patient and stay calm;

2. Follow the rules, especially the -1+1 rule. 

3. Keep practicing meditation. It helps me to stay calm and conscious. 

4. One of my goals is to exit all of my deep ITM positions before the end of the year. 

Another Solid Green Week 1-27-23

 I didn't write a weekly review for last week due to the Luna New Year. The market ended with a solid green week. SPX and RUT closed above their 50 WSMA for the first in a year. It's a bullish sign for the market. We have yet to see a January selloff as the seasonality indicated. The slow inflation rate and the Fed's slowing rate hike are positive developments. However, the major resistant areas are right above. The FOMC meeting next Wednesday will be a catalyst. 

The IB Net liq is down 19K from 226 to 207K. I didn't read correctly for the rally this week. SPX swung up and down wildly. The expansion of BF positions got squeezed deep into TM. The realized P/L for the last two weeks is -3.3K. The premiums collected are $5,375 for the same period. The leverage is up 14%,  from 177 to 205. VIX has been below 20. 

The 0 DTE didn't perform well. I failed to enforce my S/L on the 18th in both IBP and TOS. The snowball kept rolling. The BF expansion added more positions to the snowball. TOS added $1.1K only for the two weeks. IBP collected $3.34K for the same period. The cash was mainly from BF expansions. It's not realized profit until these contracts are fully closed. 

Lessons Learned:  

1. I am still not well disciplined to trade 0 DTE consistently. I will stop trading it until I can resolve this issue.

2. I need to apply the -1+1 rule to the BF hedges. 

3. Better manage my positions before the end of the day. Start to roll the DITM positions in the early afternoon. Use the market order to void losses. 

4. Continue to practice meditation every day.  

The 2nd Green Week For 2023 1-12-23

 The major indexes booked another green week in January. SPX, Dow, and RUT closed above their 200 SMAs on daily. NQ is the only one legging behind. The small cap index is leading the rally. It's a leading indicator in both directions. However, the weekly downtrend has yet to break. The majors are approaching the upper trend lines. 

The IB Netliq is up another 36K to 22.6K before the 20K transferred to BOA Q. It's a 19% increase, thanks to the current rangebound low vol market. The leverage is down from 207 to 177. The realized P/L for the week is $19,423. The cash collected is $10.8K. The BF hedges paid well with rolling SCs. It's a risky strategy if the market starts to trend again. I reduced the size of the rolling in the last two days. 

The 0 DTE performed less for the week. I often couldn't get both sides in. Luckily there was no S/L either. I traded a couple of 1 DTE too. The total cash collected is $2,700 for this week. 

Lessons learned:

1. Recognize and analyze the current market conditions. Act accordingly. 

2. I still need to recognize and overcome my fear of losing. Be more machinic in my trade. 

3. Don't let my guard down. The winning streak will end once the market condition changes.    

4. Self-discipline is still my main weakness. It's my psychological pain management.    

A Green Week To Begin With 2023 1-7-2023

The major indices closed the first week of 2003 in green after 4 consecutive losing weeks. The technical pictures have improved. SPX and RUT are back above their 20 SMA daily and weekly. However, the downtrend is still there in the bigger picture. 

The IB Netliq is at 210K from 179K, an increase of 34K, 19% for the week. It's the first time above 200K in several years. The leverage is down to 207. The rangebound prices and low volatility helped. The realized P/L is $59.6K. The premiums collected are $21.6K. Both results are the best in recent memories. The accumulated cash is mainly from the BF hedges. The BF expansions have added positions and risks until they can get closed. 

I didn't trade the 0 DTE in full size. There were only 2 trades in IB for the week. I wanted to commit only a little during this holiday-shortened week. The total cash is $3,260. I made 2 DTE IC trades. One was mismanaged in closing. 

Lessons Learned:

1. Continues to practice and learn meditations. Meditation helps me to stay calm and clear. 

2. Learn to accept losses mentally in order to obey the S/L rules. It's part of changing habits.

3. Allow placing full hedges for the 0 DTE system one time. I must force to S/L if no hedges are in place.