XLF June Options Strangles Expired Worthless: -$237

My XLF June strangles options expired worthless on Friday. This amounts to a loss of \$207 + \$30 commission.

The two mistakes I made were as follows.

  1. Not Executing My Stop Exit. My stop of \$0.50 premium triggered just a few days after my entry. As can be seen first triggered here and then my attempt to persuade myself here.
  2. As can be seen in Figure 1, XLF dipped to \$11.50 ever so briefly last Wednesday. I had the entire morning to ponder should I have exited with a \$35 loss instead of the \$200+ now. I thought that was the start of a run down so I didn't exit my position. Instead, I really should have placed a stop at around \$11.80.

This is the second time I didn't follow my own rule. And both times I ended up with a loss. I will not make it a third time.

[caption id="attachment_1521" align="aligncenter" width="500" caption="Financial SPDR ETF"][Financial SPDR ETF][][/caption]

[caption id="attachment_1522" align="aligncenter" width="500" caption="Financial SPDR ETF"][Financial SPDR ETF][][/caption]

[Financial SPDR ETF]: http://traderpau.files.wordpress.com/2009/06/2009-06-22-xlf.png [Financial SPDR ETF]: http://traderpau.files.wordpress.com/2009/06/2009-06-22-xlf_prop.png