Well, with the price of $QQQ dropping below 57 and showing no sign of recovery, I decided to cast off both my Aug 58 and 60 call positions for less than a 1% loss.
Not only was the price of the underlying eating away at the premium, but the front month time decay was also starting to kill it (the premium) as well. I sold my 58’s at 0.58 (1.26) and 60’s at 0.12 (0.54).
I certainly thought we would have bounced by now. With each day of market losses and growing pessimism amongst the masses, I am becoming more and more convinced that we are going to see a sharp, blistering rally sometime soon. Hell, if I was simply buying shares of $QQQ, I probably would have been willing to sit tight on my position for a few more days.
However, as mentioned, the time decay was killing my options. So, I’m left to lick my wounds, try to learn from the trade and move on to other opportunities.