Background- felt ill this morning -flu like again, so not ideal for making trading decisions. However I was happy to see the F down 70 points to S1*, so decided to close out my combo-short 4700 call long 4000 put, for a credit of 6.
The trade was placed for a credit of 4, but went against me as F smashed up about 80 above my entry level, which didn't bother me, but should have made me think about averaging in. I saw key level of 4450, but possibly 4500-turns out the 4500 was attained, so I could have really juiced up my combo by putting on more of the same trade.(possible credit of 20)
What to do? Curse my luck, blame the rabbits? Of course! And then when the mist clears, get analytical, and see how I could have done better.
I will re-evaluate my entry size, and accept that position is often not the optimum, and this can be mitigated (al la Oliver Velez) by legging in. Legging out can be good too- eliminating all risk, and leaving room to capture more of the move- e.g. closing out short calls and selling puts further out creating say a 4000/3850 put spread. I may be wrong but I just don't see the F down at those levels-Brown and his B of E chums won't let that happen. I am out of the market now, and will reward myself with a trip to the cinema with 'er indoors' blessing. Angels and Demons will be a gentle distraction.
*Pivot levels seem to work much better on DOW- for help with these- mypivots.com is terrific, and free.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment