Hey Guys,
The market is down to start the morning, but the S&P 500 is still hanging out near its all time highs.
I got hit hard on my DOCU trades. Bad news happened to hit the stock after I took the trades. It was as if I stepped in front of an oncoming freight train without realizing it. For the stock position, I ended up with an oversized loss. The option positions are nearly worthless at the time I'm typing this, although those trades are still open.
One of the risks of trading is that news can happen at any time. It's relatively rare for major news to land while I'm holding a position, but it certainly happened that time, and it's happened to me before. It can go both ways. We once had an option trade here that had a 400%+ gain due to good news happening while we had the trade open. That wasn't the plan, but it happened, and it's part of the risk/reward profile associated with trading. The thing I keep in mind is that all of these news-type events are already baked into the backtested performance. So as you might be able to predict about me, I accept the trade outcome, stick to the plan, and move on to the next trade.
The one glimmer of good news is that my WMT option trade reached its profit target yesterday.
I took on some new trades today. In the stocks account, I bought positions for QCOM and GOOG. In the options account, I bought a position for MS.
If you have any questions or feedback, I'd love to hear from you.