The market atmosphere this week was defined by a massive volatility contraction. We entered the week in a high-stress regime with the VIX at 28.00, but as the week progressed, fear subsided significantly, with the VIX closing near 19.83 on Friday. While this “vol crush” typically aids premium sellers, the sharp realized losses in the Iron Condors and Jade Lizards indicate that the underlying indices likely moved outside of the expected profit tents, turning a vega-positive environment into a gamma-driven loss. The spike on Tuesday caused me to close out a few trades for a loss for the week. Nothing major and live to trade another day.
2. Fund Trackers
Lexus Fund
- Total YTD Realized Gain: $7,977.11
- Remaining to Goal: $42,022.89 (Target: $50,000.00)
- Progress Bar: [▓▓▓░░░░░░░░░░░░░░░░░] 15.95%
- Required Weekly Velocity: $1,135.75
- Est. Key Handoff Date: September 10, 2028
Travel Fund
- Total YTD Realized Gain: $2,923.24
- Weekly Contribution: -$1,675.58
- Status: The fund absorbed a sharp drawdown this week following a volatility spike that breached the put-side protection of the /ES Jade Lizard. Capital preservation is the current priority.
3. 🆕 New Position Openings
Lexus Fund
| Underlying | Strategy | Trade Date | Status | Risk | Potential Income |
| – | – | – | No new positions remain open. | – | – |
Travel Fund
| Underlying | Strategy | Trade Date | Status | Risk | Potential Income |
| – | – | – | No new positions remain open. | – | – |
4. 📊 Weekly Performance Breakdown
Lexus Fund
| Underlying | Strategy | Hold Days | Status | Realized P/L |
| SPX | Iron_Condor | 8 | Closed | -$814.76 |
| /ES | Iron_Condor | 8 | Closed | -$890.22 |
| /ES | Jade_Lizard | 1 | Closed | $337.28 |
| SGOV | Dividend | 0 | Closed | $760.69 |
Travel Fund
| Underlying | Strategy | Hold Days | Status | Realized P/L |
| SPX | Broken_Wing_Butterfly | 18 | Closed | $330.24 |
| /ES | Jade_Lizard | 5 | Closed | -$2,005.82 |
5. 🔍 “Under the Hood” Stats
Lexus Fund
- Profit Factor: $2.43$
- Weekly Realized Profit: -$607.01$
- Transaction Costs %: $3.21\%$
- Expectancy Per Trade: $181.30$
- Rolling 4-Week Average: $332.55$
Travel Fund
- Profit Factor: $1.46$
- Weekly Realized Profit: -$1,675.58$
- Transaction Costs %: $6.99\%$
- Expectancy Per Trade: $153.85$
- Rolling 4-Week Average: -$15.42$
6. Tactical Lesson & Data Health
Tactical Lesson: Respecting the VIX Breakout. When the VIX trades above its 20-day moving average during an Iron Condor cycle, the “gamma-rent” becomes significantly more expensive. This week’s performance highlights that passive income from SGOV dividends, while reliable, cannot offset the rapid delta expansion of leveraged index positions during a volatility regime shift. Future adjustments should occur at the first sign of volatility expansion rather than waiting for strike breaches.