Monday, June 19, 2017

I f'd up my portfolio

June 9th, the technology sector sold off big time.  I was sitting at a comfortable distance from my out of the money (OTM) bull put spreads on $AAPL that very morning till the shits hit the fan.  I watch in horror as my OTM bull put spreads became in-the-money (ITM).  As the day wore on, it became worse and worse!! 
 
OMG, I hate APPLE!!  Seriously, every time I play with them, I get burnt bad.  I too had some Facebook bull put spreads... those gave me a run for my money, but luckily, $FB landed above my strike price.

Greed got the better of me.  I could have closed my puts for a small profit that morning instead I let them run its course.  During that day it traded as high as $155.19 and as low as $146.02.  $AAPL closed at $148.98 per share which was below my strike price.  

I was confused as IB liquidated half of my puts for $AAPL just an hour before close.  So I froze and didn't close my outstanding remaining puts.  Tada, I now own 500 shares @ $150 due to an assignment for my bull put spread that went very wrong. 

The following week, I had to make some adjustments to my overly extended option positions.  Now, I'm on a recovery mode.  $AAPL hasn't fully recovered unlike $FB.  I'm so puzzled why $FB was only hit a little while $AAPL got slammed.  


Luckily I have tons of margin room... when $AAPL goes up to $150, I'll be selling some covered calls to recoup my losses.  I'm so impatient when it comes to holding stocks that are down, but right now, I'll just sit on my hands and weep in my paper losses.

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