I enter into a trade without checking the related news
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.
This week Option I look at bullish stocks and use buy options strategy
This month I have improved on my Options Journal Template
Adven7s Options Journal Template
Status : C-buy to close, E-expires worthless and A-assignment
Recently, I met up with a futures trader friend and we discussed about trading in general. After an hours or so of exchanging idea, she impressed upon me on two aspect of option trading:-
This week expiring date also coincide with the monthly date.
SOLD HLF, ESZ4, NUGT, FB and HAL expires 14 Nov.
Below is what I used for entering the trade:-
I play on Crude Oil future and done one round of salvaging the trade to come back up positive
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.
This week, I chose HLF.
Key indicator used: After earning announcement
Entry: Support level
Option strategy: Naked
Duration: 5 days
To be updated after 7 Nov 2014
Review : Placing trade on news does work!