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.
- 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.
- 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"][/caption]
[caption id="attachment_1522" align="aligncenter" width="500" caption="Financial SPDR ETF"][/caption]
: http://traderpau.files.wordpress.com/2009/06/2009-06-22-xlf.png : http://traderpau.files.wordpress.com/2009/06/2009-06-22-xlf_prop.png