I’ve been busy with a new project today so I haven’t time to delve into anything pertaining to the stock exchange this evening.
I did liquidate the call section of the $QQQ strangle position that I started last week at 2.45, the HOD. I saw 2.45 come and go early on in the day. When the value dipped to 1.90, I almost liquidated the position and would have all but guaranteed a ‘larger than planned’ loss on the position.
Then we get the late day rally…I’m making Kraft Mac and Cheese and getting my kid to his afternoon nap and I see prices creeping back into the 54.2 region.
I put a limit order in for 2.45.
With about 3 minutes to go, I almost lowered it to 2.42, but stayed the course. Next thing I know I see “Filled”…nice.
Worst case scenario: I lose 0.35 per contract, which is lower than my original risk tolerance. Not bad, not good either.
Lesson to be learned: I should have gone with the September (or even further out) strangle as the time decay is killing the put position and didn’t help the calls at all either.
I’m still stalking a short position in $LVS, $BMY and $CBS.