SPX started going up on Monday after last week's selloff below 100 DMA. It went up in five consecutive days. It was a dramatic reversal of 150 points swings from down 1% to up 1% on Wednesday. It's above 100, 50, and 20 DMAs now. The ATH booked in July is less than 50 points away. It may reach a new high or smackdown during the FOMC week. It will be a volatile week as the Fed is expected to cut the interest rate for the first time in 3 years.
IBQ Netliq is up 19.7K from 82.3K to 102K, +19.3%. The realized P/L is -3773, a narrowed loss. The collected cash is -$2356. I had to buy many hedges to keep the red warning off. I took losses or missed the winners in the directional trades. The options' value decreased by 9K from -534K to -525K. The delta went down from +236 to -362. The leverage is down from 868 to 673. VIX is down from 21 to 16.8. The total positions are C9 -0 and P9 -0. There were 67 trades with many hedge buyings. The commission cost is $237. IB increased the commission by 1-2 cents per contract this week. I didn't add any 1-1-2 this week. There is still 1 SC ITM.
IBP is in a similar situation. The rally relieved the SP side but pushed the SC DITM. I was able to exit 3 SPs on Friday. I had room to add 1 SP for next Tuesday. The realized P/L is $23773. The cash collected is $452. The total positions are C5 +0 and P3 -2. I am still in the survival mode.
Lessons and Plan:
1. I made stop-loss orders for my positions. But I pulled them out at the last minute during the big reversal on Wednesday. I reversed up twice. I still failed to take the stop. It's hard to change the bad habit. I made progress in setting up the stop-loss orders. I have been working on dealing with my fear of losing. I don't like the feeling of losing subconsciously. Losing is part of trading.
2. I didn't follow the rule of -1+1 strictly. I was overconfident the side couldn't be breached. It actually blew through several resistant levels on Wednesday. I ended up adding 2 SCs. They cause over $17K under water now.
3. I shall stay calm and less active during the big news events.
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