So I took a loss. A HORRIBLE percentage (103%) loss on a PUT, but in all honesty, it was only $105 down. (Yes that's right folks... it cost me more to EXIT the position then I received for entering it) So yes, my weekly income is in the crapper but here's my reasoning:
Why did I do it? It looked like I was going to take the share assignment and I didn't want to wait. And now that it's the weekend, it would have. Based on the strike price, I would have been $200-300 out of pocket. (I can't give you an exact number because it can't be determined until the market opens on Monday and my shares arrive in my account... Sometimes you get the assignment, but market forces over the weekend move the trade into your favour... It's wacky I know... A mind-job for some. But I'm not going to argue with profits)
So I closed the position and opened a new one further down the road.
The NEW position netted me more than I lost. So we will just wait to see what happens.
For it to work this is what the US market needs to do:
a) go up
b) go sideways
c) go down a bit.
if it tanks then I'll do what I did above... Take a small loss on the trade and open a new position further down the road.
This is only my 3 option trade where I've decided to bail this year. Mind you I'm only up to about 30 or so option trades. (Nearly 1 move per week).
So I guess you can say that I'm achieving a 90% success rate on my trades.
I'm happy with that.
Stay HUNGRY my friends!
