A painful lesson – Entering a trade without a plan

I enter into a trade without checking the related news

NOV 20141127

I had a position on Crude Oil futures /CL and I know it is dropping but I enter into a naked put on NOV and the price drop from 71 to 65. I did not reconcile the two event together and treat it separately. I am unable to repair my position in time due the Thanksgiving holiday market close and stock price drop prior to trading hours period.

Lessons learned:

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Options Repair Strategies

Someone told me that it is very difficult to lose money in Options trade. I wasn’t convinced as I had lost big when the market move against me. As I progress in my options journey and suffer enough pains, I realize there are methods and ways to minimize the lost or even can be profitable when we know how to repair.

I will share some of the strategies I learned and used to minimize lost in the next few blogs post.