Monday, June 18, 2007
Sell - 22.50 Jul Call @ 10.30 (Bought 12.50)
Sold this on a break below 33. I felt it was holding 33 as support for a while, and once it gave way, didn't want to hold this any longer. This trade went against me the moment I bought it. The only reason why I bought it was because it looked oversold at that time and I was anticipating a bounce. That's no good.
Looking at the way RIG and POT have behaved the past few days, makes me feel pretty crappy that I sold them a couple of days ago. Left a lot of money on the table. I wouldn't have sold them had there been more time on the expiration.
So I've decided to put in another rule -
Buy options at least 3 months out.
Looking at the way RIG and POT have behaved the past few days, makes me feel pretty crappy that I sold them a couple of days ago. Left a lot of money on the table. I wouldn't have sold them had there been more time on the expiration.
So I've decided to put in another rule -
Buy options at least 3 months out.
Tuesday, June 12, 2007
Buy - CAL 22.50 JUL Call @ 12.50
While the whole world was short CAL, I decided to buy a call on this. Big mistake. Never try to swim against the current!
Will hold this for a day or so, if the pain is too much, will get rid of it.
I got caught in a bull trap on this one. I should have waited for a confirmation on this. The correct way to have played this - Trader Jamie.
Lesson: Don't fight the trend. Always wait for confirmation.
Will hold this for a day or so, if the pain is too much, will get rid of it.
I got caught in a bull trap on this one. I should have waited for a confirmation on this. The correct way to have played this - Trader Jamie.
Lesson: Don't fight the trend. Always wait for confirmation.
