Flying Up & Away 7-5-24

This week, SPX and NQ rose to new highs while the Dow and RUT stayed in ranges. SPX broke above 5560 and headed to 5600. MACD just crossed up. RSI is over 75. The economic calendar has J. Power testify in Congress on Tuesday, CPI, and PPI on Thursday and Friday. It's going to be a busy week. The seasonality is favoring the bulls for the first two weeks of July. 

IBQ Netliq is down 11K, 7% from 163.5K to 147K after the 5K transfer to BOA. The realized P/L is $11993. The cash collected is only $1328 for the 4-day week. The little cash profit is mainly from the long calls. I followed my plan to trade longs. I didn't trade the BF setup this week considering the position sizes. The options' value is up 3.2% from -442K to -454.7K, +12.7K. The delta is down from 25 to -218. The leverage is up 12% from 362 to 412. It's an alarming level above 400. The total positions are C6-0 and P8 -1. There were a total of 36 trades for the week. It's an average of 9 trades per day. The commission cost is $135. I added one 43 DTE, 1-1-2 trade for August 16. 

The 2 small accounts are in the worst situation for the year with the new highs. I had to add 5K cash to each account for the Schwab to IBP transfer. The realized P/L is $-31225 for the week. The total lost cash is -1026. IBP and TOS lost $-357 and $-680 each. I spent money to roll IBP positions to save some b/p. The asset transfer from Schwab to IBP was rejected for the 3rd time due to the 2 week expiration requirement. I had to expand 6K for each spread and roll the positions to July 29. These positions are DITM and at risk of liquidation unless I add more funds. 

 Lessons and Plan: They are the same as last week except the stress level is higher. 

1. It's important to keep the size small. The small size will reduce the red and yellow warnings. 

2. Have patience in directional trades. I have different emotions when in such trades.  

3. Stay calm and disciplined. Make myself a little better every day.          

4. Learn this hard lesson of 2024. I will spend money to reduce my holdings and risk