SNDK – I took the loss…

Chalk this trade up to a lesson learned… Don’t trade too soon.  Yes, I entered this trade too early before earnings.  Since entering this trade at $35.93 for the underlying, SNDK went up to a high this morning or $38.57 or up 7.35%. 

I was bearish on the market, and bearish on SNDK and I was WRONG.

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I closed all options today for a loss of $680. 

Like the barber says, “Next”. 

3 Responses to SNDK – I took the loss…

  1. “Yes, I entered this trade too early before earnings…I was bearish on the market, and bearish on SNDK and I was WRONG.”

    I am a former futures floor trader. I’ve becoming very interested in options of late and discovered your blog. Great, stuff, thanks.

    Your lament here reminds me of what I saw in some floor traders. They’d have an edge (as you do when you are patient enough to wait for earnings set-ups) and consistently made money with their edge, but then pissed away some of their profits with directional trades in which they didn’t have an edge.

    Bottom line: It’s OK to be “just a spreader” and never make a trade based on market directionality.

  2. “I learned from my impatience from that trade.”

    Fortunately, your “tuition” wasn’t all that expensive. You can live with $680…assuming your learned something. (And I’m sure you did!)

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