The anticipated tapering didn't happen. The fire work started rapidly right at the announcement. My thesis was pop and drop as it happened many times before. It didn't even have a retest of the break out area and went straight up for 20 some point. I couldn't come up with a good hedge strategy other than selling this week's calls at higher price. I didn't think of using SPY call nor sell 1690ish for hedging.
The bottom line is that I am still don't have a pro's discipline and mindset. I thought about reducing part of my call position this morning but didn't take action. Rather I was hold and hope. I know better but didn't enforce it. Now it looks like this week's loss may wipe out my last three months' profit.
No comments:
Post a Comment