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Tuesday, April 24, 2012

Feeling really anxious

Trade History:

  • None
Gut Check:

  • DNDN is still climbing. Closed at 11.31 today.
  • The Strike 11.00 Ask is 0.61. I sold it at 0.17. HUGE loss if I sell it now. But I should probably keep waiting. A loss is confirmed -- at this point -- no matter what. I might as well wait for the time premium to decrease and accept the price on Friday. It could go even higher by then. 12.00? Damn.
  • I am feeling very upset. Anxious. Embarrassed. Angry. Annoyed. Everything. I never wanted to hold stock too long or have to deal with fluctuations. Selling Covered Calls and getting assigned to go back to a cash position was the plan.
  • I need to somehow learn from this and do better in the future.
    • I need to be able to hold stock without panicking. I tried to keep making money on DNDN because it's not giving any dividends so it's just dead inventory sitting in the account. There's money to be made, but it's hard by Covered Calls when the price can keep going up like that. I don't want to handle having to predict price!
      • I'll have to buy dividend paying stable stocks and accept less options profit due to less volatility. And a comfort in holding stock for a long time.
  • For now... I have a plan in mind but the anxiety is wearing at me.
  • I think what is mostly making me angry and embarrassed is posting my first loss. I narrowly escaped last month with a Buy to Close and another Sell to Open, making a fraction of 1% gain. Now in one week I'm about to wipe that all out. And this compared to previous months where I was making 10% returns!

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