Daily Loss of 1195.7 Option Journal #24
The market was up today for Tesla.
I was dumb enough to trade a call option for Tesla and lost money. I should have not played at all but, as the market for Tesla was shooting, I just followed the lead on it.
When the market is too hot, I know I should have not played the action, but today I was dumb.
Another play that I did was dumb as well. Yesterday, since the margin that I used for Etsy was high, so I decided to go with the iron condor on the play for Etsy. However, the Etsy shoot up sky high, and it was beyond my limit of loss, so I closed out the position. If I just stick to the put, it should have been much better. Original trade for ETSY was closed out for 0.1 which was a great success on it. So far, I am okay when the market is going down and roll down more with it, but I am not okay when the market is shooting high. I think understanding myself is the key to the success of the trading.
Right before yesterday, I added the LMND trade. It went up too high for three consecutive days and because of the volatility, I could write a call option far beyond the current price. It was 225 that I wrote call option where the current price was at 185. I also closed out this trade due to I was chickened out for the previous trade for Etsy. I know the market is unpredictable and it can go either way, but I know that when the market is hot, don't bet against it.
The purpose of this selling option trade is not to lose money. High probability of trade. That is the goal of the trade. I need to discipline more in order to be a better trader.
As I lost money on Etsy, I just made a betting trade on this time for Etsy. I wrote right under the money line put vertical. It has a risk of $1.4 per share and the award is $1.1.
If I close this trade up, then for this week, I will be up for the week as well.
If not, I will lose around $2,000 for the week.
Close Trade:
ETSY 10 Jan 22 140/160 Put Vertical @ 1.5697 closed @ 0.1 profit of $1469.7
ETSY 10 Jan 22 220/240 Call Vertical @ 0..4096 closed @ 3.2 loss of $2790.4
LMND 10 Jan 15 225/230 Call Vertical @ 0.375 closed @ 0.25 profit of $125
Daily Loss of $1195.7
Open Trade:
ETSY 10 Jan 15 202.5/205 Put Vertical @ 1.1
TSLA 1 Jun 19 1090 Cover Call @ 117.8222
JPM 10 Jan 22 128/132 Put Vertical @ 0.8197
AMZN 10 Jan 21 3035/3040 Put Vertical @ 0.4095
More than two weeks out
GNOG 10 Jan 21 22.5 / 25 Put Vertical @ 1.2196 (formerly LCA)
NNDM 10 FEB 21 7.5 Naked Put @ 1.4748
cover call
TSLA 1 Jun 19 1090 Cover Call @ 117.8222 (cost basis around $12)
TSLA: 120 shares ======================================================================= #sellingPut #optiontrade #sellingput #putvertical #PutVertical #trading #stock #option ======================================================================= I am not a financial advisor. Any trades listed are my own personal trades and meant for educational purposes only. Option trading bears high risk and high return strategy for trader.