I purchased a NDX vertical-(1875/1900) put yesterday at $12.30 and sold it today at $13.85, a little to early. As the chart above shows there was a significant drop after where I sold. Market indicators at the time had techs continue to drop, but because financial companies and airlines were going up so I felt a turn to the upside was around the corner. Indeed the market pulled up around 10:30. Yet I should have let the momentum of the trend push me out of the trade versus my own instincts. The reason is because right after I sold the spread, two minutes later it was marked around $14.80. The spread peak was around $15.50 and that was easy money I did not pick up.
On the other hand it is always better to wish I had more gains than to accept a significant lost. Right now I am getting wacked on my YGE puts spread and feel I need to close them today. Not sure yet.
Posts
No comments:
Post a Comment