Fear creeps in and I close all the trades when I saw the earning reports. I think trading is very different from investing. I should not mix this two together. Option is a tool to enhance your return from investing but when it is used wrongly because of greed then it can cut you like this.
This month losses have wiped out all the gain and set me in red.
Lesson learnt – do not be greedy and go back to the rules and fundamental of investing.
I will not chase after premium blindly by selling put and forget portfolio sizing. I should deploy diagonal call strategy or Bull Put Spread as well.
Let’s start this from ground zero.
I manage to make back a 2k on some sell put on TLT and IEF, I also made two other buy calls:
1. Buy 10 JD.com leap call 18 Jan 19 SP 30 – Average Premium 10.8
2. Sell 10 BZUN 15 Dec 17 SP 30 – Average Premium 1.2