NovWk1 - SPY Market Summary
I got home really late last night. Had a meeting that ended pretty late. This coupled with the fact that I am also sick. And I have a rule that I will not trade when I am not feeling well. This is because trading is very much about psychology and if you're not feeling well, you generally don't make good decisions.
I tend to get a little emotional when I am not feeling well and that doesn't help when it comes to trading the markets. One has to be clear about the trade and the objectives to achieve. For options, it is naturally to see the entire trade expire worthless. that has always been my only goal when I trade options.
Last night I saw an opportunity and I decided to take it, albeit the fact that I was also feeling quite tired.
Learning from the experience of losing the trade two weeks in a row and setting my account balance by 5 weeks worth of ROI, I decided to be a little more prudent this week.
I sold a SPY Put Spread (as it was trending negative then) at $173.5/174.5 for a premium of $0.05 and immediately placed a contingent order on price less than $174.80 (learning from the last two weeks' losses) and then I dropped into bed.
Of course this morning, the SPY did a reversal from the drops on Wednesday and Thursday trading days and decided that a little recovery is needed. The SPY ended higher, much to my surprise and benefit. The trade expired worthless, and yes, I am back on track to my goal of achieving financial freedom, one baby step at a time.
A friend of mine said this, small gain, potential big loss. I tend to agree. But it is nice to win. ;)
