CLOSE: AAPL 145/150 Short Put Vertical -80%

I did not roll out of this trade. If you did roll, you are sitting on a nice profit right now.   I took the Max Loss of 400.

Lessons paid for on this trade:

• Cost of failing to take action on preset exit rules.
• How TOS Calculates P/L on Verticals
• Cost of Greed and Fear.

I failed to exit this trade prior to earnings with 80% profit. “cause AAPL always blows out earnings and won’t be too effected by this bearish market. Besides in doing my expectancy calculations for last years trades it was better to hold for max loss then attempt to leg out emotionally.” (Failure to take action on trading plan/ Greed)

I failed to exit after trend was clearly broken for a smaller loss.  “Cause it could come back and I don’t want to take this loss.” (Greed/Fear both)

How TOS calculates P/L on Verticals  Current Mark Price – Credit  (duh!)  FYI though don’t bother looking at the P/L % for Spreads. Its too confusing. Better to do it manually.