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

#015 TWLO Calls Closed Loss

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Trade Details: Sold to close 4 Dec 2nd Twilio Ord Shs Class A (NYSE:TWLO) 37.5 calls for $0.75 (in at $1.80 for 1 day), $292.87 total proceeds. The trade executed at 15:34:15 when the stock was approximately $35.80.

Return: (59.7%) after commissions

Note: Holiday travel delayed this exit which was prompted by deteriorating technicals. Market makers ran the mark (i.e. the average of bid/ask spread) for this contract down from $1.0275, when I entered my $1.05 limit order, to $0.75 in about 15 minutes. That type of liquidity is very concerning and will give me pause next time I consider trading TWLO. Also, I need to read up on exit strategies for options traders liquidating in a deteriorating market.

Once again, I entered a position before technical confirmation and it produced losses. This has been a very instructive run since getting off to such a good start (July to September). I remain solvent, even above the nominal Q2 goal set at the outset of my challenge, but I am experiencing the inevitable lows that come from pursuits such as this. Regroup and press on.

Status: Account $1,269.11 | Q2 Return (66.8%) | Q2 Goal 59%

#016 JPM Puts

#015 TWLO Calls