It is refreshing to see someone in the community openly discussing about where they have gone wrong and the lessons they have learned in the process. This is a rarity. And it is especially true with options trading. We hear so many success stories about how someone got paid XYZ in premium, how this is easy money etc. but not a single word on goof ups.
W.r.t advice for you on this specific situation: I really do not have anything specific. Like you said, this seemed like just a case of being blinded by the premium, and that is maybe the #1 thing to watch out while writing option contracts.
You're absolutely right, there is indeed a lack of failures in social media, which is quite unfortunate since i find that failures are often the most interesting parts of investing!
At the end of the day this failure was predictable and avoidable had I just paid more attention and had stuck with the plan... Which is exactly what got me in trouble before in my previous failures!
Hopefully this time is the charm, and I won't have to write another one of these! :)
That said, it's important to note that, at least to me, making or losing money doesn't constitute a failure.
At the end of the day if I research a company, or try to do some arbitrage (like the ATVI-MSFT merger), and end up losing money on the investment, I don't consider it a failure.
What makes it a failure is if i didn't do my research properly and got caught off guard by something, and that applies to whether I made money or not.
For example I purchased (and still own) a substantial amount of CSPX, it's currently my top performer yet I still consider it a (minor) mistake.
At the same time I'm down 40% on $INTC and I remain confident that my thesis will play out, and the company will be a wise investment.
Hey Tiago,
It is refreshing to see someone in the community openly discussing about where they have gone wrong and the lessons they have learned in the process. This is a rarity. And it is especially true with options trading. We hear so many success stories about how someone got paid XYZ in premium, how this is easy money etc. but not a single word on goof ups.
W.r.t advice for you on this specific situation: I really do not have anything specific. Like you said, this seemed like just a case of being blinded by the premium, and that is maybe the #1 thing to watch out while writing option contracts.
Cheers!
LWD
Hi LWD!
You're absolutely right, there is indeed a lack of failures in social media, which is quite unfortunate since i find that failures are often the most interesting parts of investing!
At the end of the day this failure was predictable and avoidable had I just paid more attention and had stuck with the plan... Which is exactly what got me in trouble before in my previous failures!
Hopefully this time is the charm, and I won't have to write another one of these! :)
That said, it's important to note that, at least to me, making or losing money doesn't constitute a failure.
At the end of the day if I research a company, or try to do some arbitrage (like the ATVI-MSFT merger), and end up losing money on the investment, I don't consider it a failure.
What makes it a failure is if i didn't do my research properly and got caught off guard by something, and that applies to whether I made money or not.
For example I purchased (and still own) a substantial amount of CSPX, it's currently my top performer yet I still consider it a (minor) mistake.
At the same time I'm down 40% on $INTC and I remain confident that my thesis will play out, and the company will be a wise investment.
Best regards,
Tiago