I was talking about exactly that, my tendency is too want to pay for the trade right off the bat, so i meand 5-10 ticks and i probably would have knocked it in half, but he kind of said to me, look if your taking option long shots, take the long shot and forget about it, it either does what you think or it doesnt. Im more than willing to pay 200 bucks for an idea.
My thought has always been to piece out of positions but a part of that is because i remeber every single time ive been fucking torched, so i have a revulsion to pain that is some what hard to get rid of.
I know that in certain circumstances it makes sense taking a bet with set risk, and just setting it and forgetting about it, its hard to get the size you need in this kind of environment, when you know it could just cripple you.
Like if i take an example of why i didnt go long the ES today when it was at 2450 at 10:00 this morning, the logic was simple, i had to set risk below 2447, so every single contract was worth 150 bucks including slippage and commiussions. So if i take 1 contract, and it explodes through 2450 (my initial thought) i got to risk 150 bucks to make 500,(per contract) that seems like reasonable R:R, but that kind of R:R doesnt deal with reality, i know im going to want to eliminate risk on it the second im fully sized in and it does what i thought it would do.
So i know if i buy 2449.5 for example, im cutting it in half probably at 2453. Cause if i have 8 contracts at 2449.5 for example, then its like a 1500 dollar loss if we snap through 2447. So theres just no way im holding that, so the weekly options are a no brainer, look at it, say what you think is going to happen, and risk a couple hundred bucks, WHO CARES.
Its alot easier to allow something to grind, in an environment like this if i know i dont got to watch it close with a potential 10k loss looming precariously over my head.
