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.
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