SPX made 5 intra-day ATHs this week. It closed the weekly ATH above 5610. It booked 6 consecutive up weeks. The rally expanded to the large caps and small caps. The two inflation reports provided contradicting information. CPI was down 0.1% while PPI listed up 0.2%. The market reacted in opposite directions to the reports. It sold off on CPI and popped up with PPI. SPX was down and up 1% in the last two days. The VIX barely moved. There is no fear in the market right now. The bulls are in control.
IBQ Netliq is down $3K, -2% from 147K to 144K. It made a weekly low of the year. The result indicated that I needed to be more aggressive in adjusting the deltas. The realized P/L is $8396. The cash collected is only $2757 for the week. It included one BFP winner. I followed my plan to trade long calls. The results are positive. The options' value is up 2.2% from -454.7K to 466.1K, +11.4K. The delta is up from -218 to -46. The leverage is up 4.7% from 412 to 432. It's an alarming level above 400. The total positions are C5 -1 and P8 -0. The small position numbers kept me out of the yellow and red warnings. There were a total of 41 trades for the week. It's an average of 8 trades per day. The commission cost is $156. I added one 42 DTE, 1-1-2 trade for August 23.
The 2 small accounts are worsting with the new highs. I finally transferred most of the TOS assets to IBP after 4 attempts. It's part of my rescue plan. I now have the flexibility to adjust the positions. The realized P/L is $-6959 for the week. There were no trades in TOS during the transfer period. The total cash is +117. I had to spend $800 to roll the two TOS positions to the end of the month. IBP and TOS had +$877 and $-760 each.
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. Adjust the positions more aggressively. Starting from the far-dated positions.
5. Think ahead and have plans for different market conditions.
6. Overcome the fear of being wrong.
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