Hey folks, first time poster looking for opinions. I think I made a mad choice in purchasing march 19th 145 calls on GLD as a correlative spec. They were .27 when I bought and .14 at present. What are your thoughts?
Your off to a good start.. down 50% What was your forecast for GLD? Buying those calls would suggest you expected an above average speedy move up.. Even with lower end IV levels, I would of thought it is not the environment to be buying naked out of the money call options.. although I did buy a bunch of DITM calls on ATML and did quite well.. closed those out today. Back to GLD.. maybe a smarter move would have been selling a MAR11 put spread (assuming your account allows it) with the sold strike a few points away from the trend line (July-09 to Feb-11) <i>not a recommendation</i>
Most of the time a short term bet that an asset will hit record, never-seen-before-highs doesn't work.
You win some, you lose some and the rest are rained out. Get used to it. Trading involves accepting the fact that there are a fair number of losers - sometimes even more than 1/2. There's no such thing as perfection. The trick is to find a way to manage the losers (higher $$ gain/loss ratio) or find more winners than losers (win ratio). Easier said than done but that's the goal line.