Interesting chart action as it touched support exactly today. I had sold puts, but maybe I should have been buying calls as it hits support. You get positive gamma if you buy the call but negative gamma on the short put sale. If there is truly a bounce you should profit more on the long call than the short put, probably should buy an OTM 25-30 delta call too. I'm going to look at those prices now and follow this.
Many of you have been reading this blog may have noticed that my blogging frequency has increased over the past few weeks as I got short the market. As you can imagine I am down money since getting short the market, this is the time when most people pull away from posting. But my goal is to stay active and involved and show you that trading is not always rainbows and butterflies. It is times like these that the things I have been sharing over the past couple of weeks are so important. You need to trade small relative to your account. I have a decent short position in the market and my portfolios are set up to make some awesome returns if we finally turn lower. But something I would like to point out is that my account is 70% Cash. I learned a long time ago how important it is to live by the rules you preach. Because of my discipline I am able to continue to hold my positions, I have time and capital on my side. I can't stress enough how important it is not to get to big....


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