I closed out my June GM 33/32 put spread this morning for a total gain of $70, just 16% of the original $420 premium.
I totally mismanaged this trade. Just a few days ago when GM was around $35 I could have closed out booking around $220. However, despite this trade being right at my exit target - I held. Why? Because I'm greedy.
There were some big signs telling me to sell which I ignored. 1) The $35 range had shown itself to be tough resistance. 2) The volume leading into the $35.17 close was WAY below average, another sign of a possible reversal. And lastly, and maybe most importantly - is the headline risk associated with this stock. You never know when a new negative headline is going to rear it's head. Well, this week we got more recalls AND today we've got a press conference concerning the "substantial" fine coming GM's way.
All in all, it's these types of boneheaded, greedy, undisciplined trades that's going to keep me average, at best.