This morning, I sold out of my disasterous long call position in $VZ. The Sept 37 calls were sold at 0.26 from a purchase of 0.56. Simply put, I got greedy with this trade…the market wasn’t there and I tried to fit the proverbial square peg into a round hole by swimming against the market tide (is that enough cliches for one sentence?).
Options can quickly (and sometimes inexplicably) remove capital from my trading account, so I always play very small unless I think I have a distinct edge. Bottom line: dumb trade…but I’ll get it back.
This segues nicely into the start of my oversold accumulation of various call options in index ETF’s. The NASDAQ has been holding up reasonably well even during the recent selloff, therefore I decided to make my first purchase some $QQQ Aug 58 calls @ 1.26.
This is the first in a line of purchases that I plan on making as I find today’s market action to be quite constructive. I have a feeling that we are going to snap back at some point soon, and I hope to take advantage of that.
I’ll be posting additional buys in the Stocktwits stream…so keep a watch on those.