jay_beckner

I play poker and trade options, seeking edges from study, reflection and analytics.

#008 CME Calls Closed Loss

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Trade Details: Sold to close 5 Oct 22nd CME Group Inc (NASDAQ:CME) 103 calls for $1.00 (in at $1.55 for 3 days), $492.32 total proceeds. The trade executed at 14:53:50 when the stock was approximately $104.01.

Return: (37.1%) after commissions

Note: As described in the opening trade write up, the anticipated snap higher didn't happen, and the choppy sideways movement made an exit difficult to find.

Given the options' short duration, significant theta, weak price action on Tuesday afternoon and the failure of CME to show strength on Wednesday (e.g. eclipse the previous day's high), I should have closed the trade before today. Certainly, the momentum indicators turned bearish around mid-day Wednesday. Perhaps recent losses in trades #006 and #007, on the heels of great gains in Q1, created a vacuum for hope (aka risk) and caused me to ignore the technicals and avoid booking another loss.

Chart showing entry and exit trades with tough sideways action in between.

Chart showing entry and exit trades with tough sideways action in between.

Status: Account $2,318.69 | Q2 Return (39.4%) | Q2 Goal 59%

#006 YNDX Call Spread Expired

#008 CME Calls