Talk about market turmoil. The market had its biggest down day in quite awhile and almost made it two days in a row. It wiped out almost 2 months of gain and this did not help a lot of my positions. I am now actively trying to hope the market has a couple of more days of correction. While waiting, I am moving positions around as well as rolling them out in time.
This is tough to do because some of the next expiration cycles fall within earnings and I don’t know how I want to do that now. I think this is a lesson learn for either trying to stay out of earnings completely or accept more probability of profit instead of profit dollars. As I experience some of the worst days for my account, I am actively learning how to prepare for this in the future.
In the meantime, I am also trying to lower my cost basis in the underlying that have caught me underwater by selling further OTM options in earlier expiration cycles. I know that this is risky and not part of the mechanics but I am more of a risk taker than most. This could end up biting me but I am picking my spots carefully. I hope the market turns around in the short term but the positions I have on turn around as well.
This is a wrap for today.