Boy I took a direct hit yesterday!
All week, really for several weeks now - I've been dreading this max loss coming my way. My June SPY 189/190 call spread was set to expire tomorrow and it was gonna cost me $520! Let me tell you people, there is nothing more I hate than taking MAX LOSSES! To me they represent an unwillingness to admit mistakes, cut losses and move on. Max losses can WRECK months worth of profits!
Well... I suffered something WORSE than a max loss yesterday.
Unfortunately I tried to get cute and hold onto my SPY long calls after I bought back in my short calls. This strategy has actually worked for me in a couple other positions. It didn't work yesterday! You can read the gory details here in my loss analysis. Suffice to say, instead of taking the max loss of $520 - I lost $920 - my worst loss of the year! That one play wiped out all my Q2 gains and some of my Q1 gains.
Fortunately I'm still up 11% on the year, but this has been my worst month by far. I'm currently down a little more than $800. But honestly though, this is what I love about trading - the hard stuff. It's the HARD that makes it GOOD! So I'm going to pick myself up, dust myself off, take these lessons and become a better trader.
For all you folks out there finding this blog for the time, I'm the Option Rider. I play with a wide open hand, for better or for worse! Please feel free to look through my open positions, my winners, AND my losers. Any advice, thoughts, comments or helpful tips are welcomed at firstname.lastname@example.org.