I echo the coach's comments on this. I also closed out my June put spread for a loss, because it triggered my stop at 1,230 and my trading plan required that it be closed. You have to look at it as a successful implementation of a trading plan. If you are trading a sound plan, it will be profitable over time. If you start looking at each individual trade, second guessing whether you could have, or should have, stayed in it longer, you have tossed the plan out the window. A sound trading plan recognizes that the market will make these adverse moves and that the positions can and will be unprofitable from time to time. Recognizing the probability of an occasional loss, the trading plan acts to mitigate the loss to prevent catastrophe. Second guessing whether to implement those risk management rules puts you in the position of no longer trading a soundly reasoned plan, but simply "gambling" on whether you can out guess the market. I am still net positive on the SPX for the year to date, having booked net +20% including this recent loss. I would not be surprised if several here have done better, which is entirely possible if they managed to avoid a loss this month. Nonetheless, considering that the S&P is now negative for the same time period and even though I did give some back this month, I am quite pleased to be profitable following what was a truly awful month for most investors. By executing your trading plan, if you have had similar results as mine earlier in the year, you are in a position to continue increasing your profits for the year. Others are now hoping they can recoup from their losses. -Chris
piccon, good to hear back from you and see you are making out alright with this selloff. I was always amazed at the risk you took with your posted positions and i honestly thought you might have gotten in trouble this month. Congratulations on adjusting your way out of this hole. What helped you was the increased vol and good directional skills demonstrated in those trades. Not to negate your positive post but perhaps you've learned much from this month's outcome and i hope you dont start relying on this type of trading to save your ass in the future. I am sure you realize you took much directional risk in the process and it worked great this time around. Again good trading.
I too was a little worried about my little French friend given the location of your strikes compared to me lol.... Glad to hear you were prudent and hedged where possible and ended up positive...
Rally (before you deleted it lol) I dare not think of what I would do should anyone exist who disagrees on JA LOL.... You and I do not disagree, we just don't agree. Agreed? - Coach Yogi Phil Berra
Put open interest at 1225 is huge... but then as I think about it, those puts already got closed/rolled if they were short.
Thanks Rally, Coach. I learned a lot last three weeks and I will do my best to avoid the mistakes I made. But I will continue doing some debit spread for the next three months with the vols picking up. Debit spreads can be very profitable. I am going to take a long week break from trading to analyze what went wrong and what went right last three weeks.