Wednesday, March 20, 2013

SPY 3/20/13

Good Afternoon All,
Spent the day yesterday Over leveraged with (15) April 5th 154 PUT options.  Ugh... In the morning, I was down $685.00 after the open, I was up $950... Did I take it???  NO, of course not, It wasn't $1,000 yet... an hour later it was at $540, then $440... that a pop that pushed me to Break Even (B/E).. I had purchased my options for $139.00 each and sold 13 out of 15 for $140.00. 
I watched a $900 gain go to shit !!!!.. It hit my levels, I should have exited with a profit... I hesitated and lost the gains. 
I do have to say that I was Happy, to get back to even from being down nearly 40% on the trade.  Speaking of range and volatility, I awoke this morning to my 2 remaining were down $50 each !! UGH !!!  that was a 35% hit... I waited after the open and made a bad purchase of another April 5th, 154 Put for $98.00 then after Ben's Speak made another bad purchase for $88.00...

So Currently, I am holding 4 with a Dollar Cost Average (DCA) of $115.00 and as of 4;15 Last price was 105.00 down $10 each for $-40.00 ... My Delta is 36, so I will need 30pts ... so 155.10 maybe is my B/E... There is still a lot of room in my channel so some downward action will not break the bull run.  I am down 8% at the close, my max loss is my premium of $461.00 ... I got the rest of this week to try to earn $200, as the price goes down my delta will increase and as it goes up, the delta will decrease... Plus as it not every penny in this acct, I am comfortable risking $250, which would put the SPY at somewhere near 156.50 or near the Most Recent High if not the All Time High... Not a Terrible place to be... Wish I woulda not held those 2 from yesterday...otherwise, this trade would be in the green...
May The Force Be With You...

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