Picking tops is a fools game

Well I never got that pullback I was hoping for in the SPY. 

You see, the problem is I'm a bit of a gambler, but gambling has NO place is this market. Timing tops is a fools game. 

Today, I'm the fool.

Three days ago I set up a June 194/195 credit call spread believing that we'd get a pullback to the 20 day moving average. The SPY was trading around 192.50 when I put this play on. I thought I was safe. 

I was wrong.

My mental stop was a close above 194, but you see, I've already got a bearish bet on the SPY (June 189/190). So I had ZERO tolerance for this one. Once it reversed this morning I started looking to get out. 

I got very fortunate though - check this out. I bought back my short position (June 194 call) when the SPY broke above 193.75. However, instead of immediately selling my 195 June calls... I held 'em!

So as we broke above 194 I sold 3/4 of my position, and then closed the other 1/4 right before the bell. Because of this move I lost $90 instead of $350. That in itself is a victory.

As far as the other bearish SPY bet, my June 189/190 call spread. I let this thing get away from me. So now I might as well hold it in HOPES we get a decent pullback before June expiration. I hate HOPING, but I wasn't discipled in this trade. I was stubborn instead.

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 theoptionrider@gmail.com.

I'm just a regular guy who has had a little success as an option trader looking to get better!