time to think about not trading in the furture. That was a clear gift to a short and the most distinct reversal you can imagine, print the chart and repeat shorting everytime you see that!!! Be on the look out ,tommarrow is a possible big day to signal a reversal if we break above 8350 dow. The base is in ,a break below the 8000 and we make a whole new low range and start over.
Good question. I have kicked myself to. Once when I was up 170,000 with Taser call options, then I held it a few days till I was only up 30,000.
These days I use a much more conservative option selling strategy. The potential return are not as high, but I am making progress using a disciplined strategy. My advice would be to establish a strategy before you enter the position, and stick with it. If you stick with your strategy, and it fails often, then change your strategy. You will never know if a strategy is good unless you execute it consistently.
A simple choice i use and its worked well on this stock as the premiums can be fantastic. i bought at 23. and at the 25.5 range sold the 22.50 call for 5.9 with that spread the delta effect will always keep me green if stock goes up and protected to below 17 ,love this stock will sell the 22.50 puts if we get a little closer ,oh i took some of the premium and bought the 40 calls for .30 so i have upside as a bonus Even if we get a good drop will sell more of the $17.50 puts when they are worth at least 2.50 3 months and this stock is free.