When the S&P was near 71.32, and ERX was at 18.79, I bought to close 1 ERX Mar 17.5 put @ 2.05. I paid $207.95 after commissions. Without commisions that creates a loss of $90, and $95.90 with commissions. I originally sold to open ERX at 1.15.
I've learned a lot from this trade(see image below). For Example, I absolutely fought the overall trend of the market and of the ETF. I should've waited for ERX to hold at an obvious support line, before making this decision. Although I may have been fooled by about a week (it held over 22 for about a week) I would have at least had a reason for entering the position. Lately Energy and the S&P have been hand in hand, that should've alerted me that for the short term this would hold true and it has for the length of the trade.
I honestly though of bailing on Friday because the swings on ERX are so high, but though I could handle them. I can't, and this new trader won't be trying any 3x leveraged ETFs anymore.
We'll see what happens with my XSP trade, it seemed so safe a few days ago, of course, that was before the whole market fell apart. Let's hope there are enough pieces to keep it over 610.
No comments:
Post a Comment