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Nothing like a stop out before a gap and run higher haha.
I can take comfort in the fact that the trade idea was right overall. Will make money off of trades like this in the long run so no point in fretting about this unlucky one. Stop was tighter than it should have been if regular price action made me tap out anyways.
Edit: Also, I have to mention that this was a nickel-wide spread. That is not my bread and butter. Basically, for nickel-wide spreads, each tick on the option chain is worth $0.05 instead of a penny. There is a lot of slippage involved as well as wide, illiquid BxA spreads so they are terrible for setting stops or when the market is going against you and you want to bail. I completely removed nickel-spreads from my trading to avoid slippage but I just couldn't pass up on the NBG chart. I will relegate trading nickel spread to only being in my IRA account were liquidity is less of a concern. Looking to trade NBG in there in the future.
GLD is recovering nicely from the gap higher. Looks like the move is being faded nicely: (Removed the P/L shading since it no longer has any bearing on the trade)
Took 5 contracts off the table earlier today. The weird/funny thing is that I split the BxA on the option @ $1.41 at the high of the day that didn't get filled when I entered it. The stock pulled back like 4 cents and someone bought it off me. Talk about paying premium for premium lol.
I restructured my expectations for STP a bit more. I want to buy at the bottom of the shaded level on the quoted image above. I was looking for a full retracement to the trendline, but based on the price action when I zoom out, supply might dry up around the $1.30 level as well. I am going to be watching volume as the market moves tomorrow. If I see buying volume coming into the equation, I will be looking to buy with a stop around $1.15. The closer the stock gets to $1.15 beforehand, the more options I can buy. I am hoping for a huge retracement obviously lol, but I don't want to potentially miss out on a chance to buy the dip either. Here is the updated (Daily) chart:
I am going to get smoked @ the open. MCP announced lower revenues than anticipated and a secondary stock offering. Stock down 20% on my DITM options
Edit:
Closed my position down a grand. Weirdly enough I am pretty much unphased. It is the nature of the market I suppose. Gotta take the good with the bad and I understand that an Secondary offering is a low probability occurrence so that was just bad luck and move to the next trade. Speaking of which...