I'm pretty sure this was my worst trade to date. Yesterday I bought to close my 1 SSO Jun 25 Put for $1.70, for those keeping score, that was a loss of $75.00 in a day. Somehow, I figured that if the market kept rising I would be a big winner. Unfortunately, I failed to comprehend the delta/gamma risk of the 25 Put, and when the market actually went the way I thought it would, this quickly gained intrinsic value as SSO dropped below 25.
Lesson Learned: If you're going to hedge a position, make sure the risk/reward profile is in line with the other position.
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