My Options Play

[cnms2]

The right adjustment is the one that leaves me with the position that conforms to my forecast of the underlying price and options' implied volatility over a well defined time frame, observing my money management rules.

This could mean: no adjustment, a new position in the same underlying or another, going to cash... This also means having a trading plan in place before making my adjustment, and the will to execute it automatically (including when I'll take the loss).

• <FONT face="Comic Sans MS">"Maybe all we can hope to do is end up with the right regrets" - Arthur Miller</font>

 

[cnms2]

Right now AMD is up 2% at $31.2, and the pain continues: "Is it going back up and I should hold, or it is just a 'dead cat bounce' and I should cut my smaller losses now?". If AMD keeps going back up this dilemma continues; if it turns down the regret and self blame kicks in: "I should've sold! If it goes back up I'll take opportunity ...". But you won't and this process continues until your OTMs either expire worthless, or you close them for a bigger loss, just before eventually AMD starts decisively moving up and you'll think: "I should've rolled them!".

This scenario happens all the time. This is why I use stop losses and take them with no regrets. This is also why I avoid long OTMs and OTM backspreads.

Quote from Multioption:

Update:

Cost basis averaged down to 1.60

Total # contracts: 150

 

[novel20]

1 trade and wiped out all your previous trades' profit. I have seen this many times.

 

[novel20]

Multioption, what kind of adjustment are you going to make?

I think you are about -$10,000 to -$12,000 with you AMD options position at the moment.

 

[Multioption]

Quote from novel20:

Multioption, what kind of adjustment are you going to make?

I think you are about -$10,000 to -$12,000 with you AMD options position at the moment.

I'm watching the intraday like a hawk. It is dicey at this point to forecast price movement!

Will update promptly!

 

[forex-forex]

Where is iceman1 and/or hajimow? Multioption clearly needs help at this time.

 

[coolweb]

Multioption ,
you threw all the discpline out the door

Wake up, Wake up

Seems like you just went zombied out.

Detrimental to your trading growth.

 

[Multioption]

What's all this nonsense about? I guess closing this thread until I'm ready to update is a good idea!!

You guys can check back third Friday of July because I'm not going to close AMD, no matter what!

 

[mizer]

Quote from Multioption:

Update:

Cost basis averaged down to 1.60

Total # contracts: 150

Stupid move

 

[volatilitypimp]

Quote from mizer:

Stupid move

Agreed. Technicals look lousy on this dog with fleas.