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.
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