I now “get” / understand volatility from experience

Lesson learned Th 5/12/19

Main account

  • Day 1: Down $1k. All down – stocks, bonds, ST corporate bonds, ZIV and USD. Many futures fell also. Why? People selling USD assets as poor growth news, trade war, and impeachment risk.
  • Day 2: Stocks down again per above. Bonds rallied as safe haven and expect lower LT yields. Sold SPY STRANG (REL+LMT) WAY above LMT price (+ve) as VIX opened higher.
  • Day 3: Stocks and ZIV rebound, bonds decline as safer environment. Some futures rebounded. As SPY opened up, SPY STRANG LMT order not filled.

BA account

  • Day 1: All 7 positions cratered with stocks in general (6 were new fills, 1 didn’t sell at LMT CL).
  • Day 2: 6 of the 7 sold (LMT CL, often near highs), 1 fell further.
  • Day 3: Stocks rebounded and opened up so only one fill out of five groups, and it was MTM profitable.