I closed this covered call out for a scratch trade. After commissions it's going to be + $2. The option expires in 20 minutes and the underlying long has to be closed out or rolled by tomorrow at 11:30am PST so I just took the break even here to be done with it. A half hour ago I was facing a -$400 loss so I'll take the break even. I am going to keep an eye on the FEB contract for an entry point near 4.000. I might even sell the 4.000 put.
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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