An Option Lesson on $YY

2020年7月21日

YY - If You are not disciplined, Guaranteed Loser market.

1. Options Liquidity
2. MM manipulating Options Market
3. Staying in the trader and TAKING HEAT.

The story is 07/09 I entered a debit spread as it checked out all my criteria for UCS#1 Long Trade.
$2 Wide Spread for $0.95 (Thanks to Skew)

On 7/16 - The Short side lost 75% of its credit, so Closed it effectively bringing my Long trade risk down by 60%

Left the Long side to close on a bounce.

On 07/21 - The Long side ran higher Closing the net trade for 80% winner.

The lesson is. For my trading mindset Its worth to establish the position and leg out (or not) or add smaller risks on the troubling candidates. (In case of YY, due to liquidity I couldnt manage it at all, so Legging out was the best options).

For any options trader, You have to understand your mindset which will define your profitability.

2020年7月21日

ノート

Keep in mind this can RIP to the upside, But Exit wont be that easy.

Thats why I dont give these plays out. Especially the low liquidity options I trade

2020年7月21日

ノート