- Didn’t make a thorough game plan. Failed to protect profits
- Failed to protect profits. Did not follow Gameplan.
- Fell victim to IV Crush.
Trade 1 Mistakes: Didn’t make as detailed of a plan before hand on this as I had on other issues; impulse buy. Got in for good reasons (Level break, EMAs in favor, indices in favor) but it was partially impulse, saw the flush out of corner of my eye.
Trade 2 Mistakes: Did not protect profit & did not follow my explicit plan for protecting profits in part because my entry was a bit after the planned break of the 252 level. I need to accommodate for imperfect entries in my plans. While in the trade, I thought I needed to give it more room to work out as the range of chop was considerable & I didn’t want to get ‘stopped out’ based on arbitrary option amount, but my plan of placing a .25 cent trailing stop on the underlying was solid & I should have had conviction in it. Had I done so I would have been able to walk out with this should have been a small win. On the break of the second level I should have moved my stop to the 252 level.
Trade 3 Mistakes: I think I got caught in an IV Crush & it blew past my active trader limit order. Lost a frustrating amount of potential profit ($15) on slippage during exit of trade and lost $5 in slippage on entry. Could have kept tighter trailing stop but the fluctuations on this were wide and I am still not clear on what best policy for trailing stops on options should be. Need figure this out. All in all this was a decent trade based on entry, but I was robbed by ignorance of what I think is IV, or if not IV then just dog shit fills