Wednesday, March 14, 2007

QQQQ formed a beautiful double bottom at noon and rebound in another beautiful extended w. Today, I was totally insentitive to the market, and stick to my ego, that the market is going down. I exited half April 143 put at good profit, but the profit for the remaining was eaten away. The mistake I made is I bot some May 143 Put too early..., should check the whole market and wait....


Spy has similar pattern. If I am sensitive enough, should also quit from the May Put.
Yesterday bot Leh April strangle. This morning both put and call opened lower than yesterday's close due to the relief of its high valatility after the earnings. Leh slided below 68, the put increased to 4 (bot at 2.1), in any case should take profit for the put here, but I didn't, still hold both put and call.

The lesson, if one side option got double in a short time, should take profits!!!

Sold GOOG April 390 Put @ 2.4 for break even when GOOG stayed around days' bottom 440, a good step. Because GOOG has reached its short term bottom again, and this put is too deep out of the money, the decay will accelerate next week.

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