AGU - closed

We took a loss on our AGU trade. I was an idiot for the way I managed it. I made a mistake that I'll show you in a following entry, but for now, let's just look at the charts to see what happened.

As you know, our entry was the left-most blue box. It was a close above the high of the low day (which was the green circled day just before our entry).

We immediately rallied up and made some money - on paper, since we didn't close out the trade.

We then had a quick gap back down and started going lower from there. I sold an October 55 Call Option for $0.35 on 9/24 represented by the red boxed day.

Then on 9/25 the stock dropped even FURTHER and hit our stop.

Here's the breakdown on the trade:

9/15 bought a Jan 45 Call Option for $8.80

9/24 sold an Oct 55 Call Option for $0.35

9/25 stopped out of the Jan 45 Call Option for $6.60

9/25 bought back the Oct 55 Call Option for $0.29

The net of the trade is:

-8.80

+0.35

+6.60

-0.29

-2.14. So, I lost $214 per contract on this trade. SUCKED. I managed this very stupidly and will show you my mistakes in the following entry. Better for you to learn from my financial loss than your own. However, you LEARN BEST from your own financial losses - nothing will sharpen your skills, nor keep your memory sharp as losses!