OctWk3 (Oct13) - SPY Market Summary
I had reminded myself not to trade this week. Twice if I recalled correctly. This week is the week where the US government comes to its breaking point. Either to give in (either party) or to cause widespread panic in financial markets.
I knew that they would cave in and that the markets would be normalize, I just didn't know how much the SPY would eventually recover. Ironically it did, and it was a ridiculous recovery. It was as if the market entered into God-mode and triggered a insane recovery.
I sold a SPY Call Spread $174.5/175.5 at a premium of $0.06 with a contingent order on price greater than $174.40.
Unfortunately price went as high as $174.43 and that triggered the contingent order and I made a loss. It was unnecessary upon hindsight as it didn't cross the strike price, but who knows what would have happened.
Effectively, I lost about 4 weeks worth of ROI in this one sad event.
Who would have thought that SPY would reach these levels. Of course a safer spread to sell would have been the Put Spreads, but that would have led to sudden death if I price were to drop due to the continued impasse in the US government shutdown.
Ah the foolishness of the naive trader. :(
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