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.
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