ES options have large swings despite relatively stable IV, for example, a 100% price movement could have less than 10% IV. Not pre-entering stop loss orders may be able to avoid some unexpected swings but it require a mental stop and the kind of discipline to take a stop. I haven't quite mastered this skill yet. Until I do it's unlikely I can make consistent profit in selling futures options. I enter stop loss orders with all of my futures trades. Why can't I make myself to take stops? I already had a plan to take the stop for my ES 1620 this morning by entering another order at higher strike after taking this stop. When the market moved up passing my mental stop I was like a deer in headlights again. I fail to execute my plan. Now I am 250% under water in this position. It will take 5-6 winners to recover from it. Next time, take a stop and be glad about it.
I have to master and win this mental challenge! Failure is not an option!
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