GOOG OCT 510 2 Put +537
GOOG OCT 540 2 Call -483
Net Profit: +54
GOOG SEP 530 1 Call -422
GOOG SEP 520 1 PUT +198
Net Lost: -224
GS SEP 185 2 Put +56.5
Total Net lost: -113.5
The Market is very bearish today but if you just look and base on today performance, Financial sector are doing well. GS has been going up and up. I made some money through scalping GS.
The Google strangle that i lose money is not really a PURE strangle. Actually it was suppose to be a scalp that i traded on wed. I brought a call and i expected it to go up. Yes the option did go up by 30cent, but i was abit greedy and i didnt take profit. Then immediately it went down. Actually im not losing alot when it go down, most probably 100++, then i was considering to buy a put for protection. That why i went to buy a put. Yeah, Stupid me as the slippage is 80cent and is not a PURE STRANGLE. When google Tank to 518 today, i still lose money as the slippage is wide and the time decay is freaking scary.
This is a lousy trade and i should have close it early. I really have to get my psychology right.
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1 comment:
Don't worry Lawrence, we all learned from mistakes :)
Your trade wasn't started off as a strangle so that's not a situation to trade a strangle.
You would have better success (though not necessarily 100% profitable) trading a strangle or even straddle with GOOG earnings.
Take Care,
Tony Chai
http://options4u.blogspot.com
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