June 26, 2017

Where is the patience?

Yes, I am still holding the SPY position in My Options Portfolio. It is called patience. A term that many options traders struggle with at times. I am currently short the SPY at three different strikes and I can tell you that I am in the red in all three positions. Conviction is key as a trader. Believe in your trade throughout the process until, of course, your mental/or hard stop has been met and then you exit the trade accordingly. In the case of my current position, I knew that the 5/14 overhead gap would be my point of max pain (stop-loss) and a sustained push through that level would drive me to exit my trade. However, that hasn't happened. ¬†Instead, we have seen strong overhead resistance at the $115 level. Furthermore, we remain in … [Read more...]