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.
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