When the stock was around $90 on May 20, I shorted 5 contracts of 110C expiring on May 23. The expected movement of this contract was around +/- $10, and I thought a $20 buffer would be enough.
The next day, BOOM, 19%+ gain on the stock price while the broad market was not behaving. If I did not stop loss at different stages during the day, the total unrealized loss would be over $2500 when the market closed today. Hard to swallow the first loss of the year, around
1K, with some rookie mistakes and "rare" timing.
The next day, BOOM, 19%+ gain on the stock price while the broad market was not behaving. If I did not stop loss at different stages during the day, the total unrealized loss would be over $2500 when the market closed today. Hard to swallow the first loss of the year, around
1K, with some rookie mistakes and "rare" timing.- Even though the stock price seems "high" and valuation makes no sense, it can go crazier, especially for new IPOs
- Indicators up, volume up, no signage of fading momentum or reversal, then do not go against the crowd
- Don't get emotional and do revenge trade on the same day
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.