Hi readers! This is just a routine update on my blog. This is a small update, so here it is:
My SPY position is at a loss of about $1,500 right now, and that is because the October 20th 422 puts are losing $6,040. My short calls I shorted on Monday are up around $2,700, and the 422 calls are up $1,700, so shorting the calls was a great move. I guess I should have tightened the straddle first, and got out of the puts on Monday and bought some puts closer to the stock price. That would have cut my losses (I would actually be profiting on the position right now), and it would have hedged a huge move to the downside. Its all okay, though, as losses are a part of trading. Now I have learned that I should probably tighten the straddle first if the stock makes a huge move. I will probably just wait and see what happens to the position, and I am ready to take a loss on it. The position expires on October 20th, so maybe my position profits by then? What happened was that my long calls and short puts lost a good chunk of their profits, meaning that the stock went down from where it was on Tuesday. If I had tightened my puts, I would have made some money on the move down. Anyways, here is my position:
I have learned a valuable lesson today, and I am grateful for that. Hopefully this lesson helps me profiting my future positions. I know I had mentioned that I would enter a couple more positions, and I will be doing that by the end of this week.
That is it for this update, and thank you for tuning in! See you in the next update!
