jay_beckner

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

#024 BIDU Puts Expired

If you are viewing on mobile, scroll down for links to adjacent posts and email subscription options for /trades and /blog. Thanks for visiting.

Trade Details: Expired 3 Aug 19th Baidu Inc (NASDAQ:BIDU) 165 puts for $0.00 (in at $1.45 for 45 days), $0.00 total proceeds. The stock closed yesterday at $220.69.

Return: (100%)

Note: Trading small dollar amounts, using relatively short holding periods, continues to be a losing proposition. Here, I thought my entry work was excellent, but I didn't have an exit strategy for a rally into earnings. The couple hundred dollars in remaining premium going into the event just became a lotto ticket.

BIDU 120-minute chart showing a compressed view of the bearish bat pattern after a big advance.

BIDU 120-minute chart showing a compressed view of the bearish bat pattern after a big advance.

The chart above looks a lot different than the BIDU chart I worked with to open this trade -- distortion is what you're looking for when you're on the right side of a move!

Consistent market/technical analysis and sticking to exit strategies continue to be difficult propositions when capital is scarce and other activities demand my time, energy and focus.

This tweet is a good reminder of consistent loss management in directional options trades.

With this total loss, trading is suspended alongside poker due to liquidity issues.

Status: $1.00 account value, ($977.40) YTD loss

#024 BIDU Puts