Wednesday's performance was exactly what I had thought it would be! The SPY dropped, and for the earlier part of the night, it dropped till the first threshold that I set for it, and that's $0.54 down. I decided then that I would sell a Put Spread $141.5/142.5 at $0.08 cents premium.
It was a rather risky trade because any dip on Thursday could result in a cut loss situation. I should have sold a spread that was a dollar lower, $141/142. That would have been a more sensible trade, and that would have allowed me more peace of mind.
The closing performance for Wednesday's trading day was an even lower $144.29 which was a $1.08 drop! That dropped basically stressed all the premiums and the $141.5/142.5 spread showed $0.17 cents premiums! Imagine if I sold that spread?! It would have been a huge gain.
It's a worrying drop, which means when market opens on Thursday, it could be a potential cut loss situation if the market were to drop. I have decided that whichever the case, if it triggers my cut loss criterion, I will cut loss.
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