横向整盘 sideway correction

Last week, the stock market was under sideway correction.  Actually that was a clear indication of a relative strong bull market. However, it was a diaster for option, especially for short term option.  I lost all the money that I gained during the previous two weeks, except two thousand dollars that I wired out to my bank account.  The direction of the stock market last week was actually in agreement with what I expected, a sideway correction.  However, I underestimated the effect of time and momentum on the value of options, especially the latter. Thererfore I paid a heavy price for my ignorance.  As to the near term, I expect an upswing movement at the end of the month and before labor day.  Hopefully I can regain what I have lost.

Lessons to be learned from this are:

1) Sell option if you expect a pause in stock momentum or a correction. 
Stock normally would pause after three to five days of upswing movement. 
2)  Sell option after a  first sign of a pause, no matter how strong the market is.

Option will lose value due to loss of momentum and time value in the correction. One can always buy back those options at lower premiums later.

[2ndglance]

MM, 谢谢理解, 你的ID像 还是你的朋友看得多. 还是留个美好的印象吧..

世上有不少我看不上眼的人,不在乎,不在意, 也就无所谓. 还是把时间留给自己喜欢的人..:)

[江南玫]

哥哥好呀？俺的股票卖了，小赚一点点，好开心呀。

哥哥，等俺玩够再换片，您就再忍一忍哦。别怪梅狠心呀。
文学城有些鬼佬加变态佬很讨厌的，欺负老实人，梅已经忍很久了。梅这是无声的抗议。