Quote from pinabetal:
I salute you iceman! Good call on VLO iceman! Wouldn't be nice if that could be done everytime! Looks like it turned from NE to due north and full steam ahead! Filled the ole gap and then said goodbye i'm heading north.
thanks - VLO printed at 102 - I see (I "re-sold" the VLO Dec 110c- to open) .
but unfortunately it apparently can't be done everytime since I f*cked up on my BBY positions after calling it perfectly. Did everything perfect right up to the time when I --
changed my fricking mind!
I sold my long Dec 45 calls near the highs at 48.40 (& closed my Nov 45 puts) -- and then sold short Dec 47.50 calls spread against Jan 50c. BUT-- I was short one leg of a BBY November 45 straddle after closing the BBY 45 puts. This was in a loss parameter. But NOOOOO I couldn't just keep that position after I began to get a gut feel that "they" would move it back to 45 into this month's expiration. Nope-- I had to exit the BBY Novs at the first chance I had to --scratch- the trade for a small loss-- !!! So typical.
You know the reason why ?
Because I was trading the "price" of the options and my P & L on the positions in BBY, and NOT not the underlying and its likely movement into this week -- given the open interest and T/A picture- as I should have been
I even came on here saying (and multi-option agreed) that a reversal and down move - PB/retracement in BBY was "imminent" (look at my prior posts on BBY)!! Yet even after that declaration (i.e. plan) that BBY could well sell off into expiry - and thus why close out BBY Nov 45c when a healthy profit was waiting to be claimed-- I still reacted and lifted the calls. Of course I also did so to remove some of the risk I now had by being short (and underwater on the front 45c) on both the Dec 47.50c and the November 45c (which was spread against the Nov 50c).
I then thought too much -- and tried to convince myself that BBY would be (had to be ) pinned to 47.50 -- not 45 --come expiry.
THEN to compound matters- I also sold short (naked) a small lot of BBY Dec 45 puts for a pittance of what they are now bidding.-- ARGHHHH -- since I was short the 47.50c (i.e. legged into a strangle for Dec 45p/47.50c) -
and thus I was underpaid just like when you flop the nut straight - but overbet and thereby chase out your opponents rather than slo playing it to the river - and getting PAID as you deserve - when you have a strong hand. A very good trader I knew in the 90s from VA. (also a mentor/friend) always told me that in the markets and trading - when you nail it (so to speak) you MUST run the table with the positions- not be greedy- but collect as much as you can milk out of it- and be focused and patient -- his words being to the effect of -- you DESERVE to get paid off- and to claim what is rightly yours'! Don't mean to sound grandiose in relaying his advice -- but hopefully the point in his comments are well-taken by all of us who will allow a loss to mount but less often will find the keys to running the table with a golden position that we have a profit in!
I should also put this one my Journal -and I will. But since we have been discussing these stock/positions on this thread- I wanted to disclose this for anyone following my BBY posts.
anyone with comments or similar experiences?
