The drop in oil prices, a stronger dollar and higher interest rates has got the market all shook up... so much so that I can hear AC/DC singing in my head!
Unfortunately, two of those things (not AC/DC) are directly related to one of my plays. Today I closed out my September XOM 96/95 put spread for a $330 loss. My mental stop on this play was a close below $96. Well we got that today, and it sure doesn't look like the energy sector is going to rebound anytime soon, and by soon I mean next week.
I also closed out my KO spread... this play got all jacked up. It was part of my "roll 'em out" experiment. I originally set this trade up as an August 42/41 put spread. However, KO tanked after it's ER and it was ITM at expiration. So I rolled it out into a 41/39 November put spread. The move protected the credit, even grew it, but it exponentially grew my risk. The second half of the trade was quite profitable so I went ahead and closed it. Unfortunately it was still not enough to make up for the $800 debit from the original spread.
So all said and done I lost $395 on the trade. Now you may be asking, why didn't I just wait until November? Great question, because there is a decent chance the play would have expired out of the money. But I didn't want to have to go through another ER only to find out a stronger dollar hurt earnings, or deal with higher interest rates making dividend payers less appealing. These factors could have easily brought the stock below $41 by November. Considering my max loss on this play was $2,630 - it wasn't worth it to wait and see.
Besides... my other profession is taking me out of the country for several weeks, and I simply will not have the time or ability to make adjustments when needed. It boils down to this, I really just wanted the KO spread off my plate and out of my portfolio.