Gut Check:
- It's options expiration day again. All my options look like they will firmly expire worthless out of the money. Which is okay for now, except all the stocks have fallen a lot in price.
- There was also an interesting article about stock price manipulation and how it has devastated DNDN. Conspiracy aside, it is obvious that playing with volatile stocks can have both high option premiums and liquidity consequences. I always knew that and had a contingency for that -- cautiously selling Covered Calls while waiting for a time to sell -- but in practice it is proving more stressful than I expected, and as early April showed with my 3% loss in just a few days, it can be very tricky.
- Moving ahead, I think I will still continue my options trading experiment. For the current batch of stocks, liquidity is a huge issue so I might not get to the 25,000 I need to trade Cash Secured Puts any time soon. It may even be that I will have to babysit these stocks for a very, very, long time.
- Come Sunday, it will be time to look at how to place my Strikes again. I'm thinking of a two-dollar gap for those options with Weeklys, and just staying put for a few days for those options that expire in June, to see if prices peek up a bit and hopefully write Calls at a higher strike and/or a higher option premium.
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