Great reading this morning. Lot of learning. I learned my margin is ok, I can afford to lose what I have in my trades, but I did not see the larger context of the run yesterday. If I saw it, like the 2019 run, I could have taken a 12,000 loss on my BCS early in the morning and bought March 22 calls. I did not stick to my plan, because things opened so much more radically than I expected. My plan was to get out of the way when I saw the early open (dog wakes me up between 330 and 430 most days and I check the market), I would have closed the BCS and bought calls with my spare cash. The open was so much higher than expected, I didn't do anything, expecting a morning dip to give me a nice exit later in the morning.
I'll keep reading and thinking as the week progresses. If we have a drop, I'll either close or roll my 1000-1050 call spreads. If we rise up to 1100+, I'll take the loss and start over. Sucks to lose a bunch of weeks cash flow, but it is offset by my shares and leaps. The big question is, do we have a big drop. If my BPS get hit, there is no positive offset of my shares offsetting my loses, just double loses. Ironically, my BPS profits for the week are a record, but not enough to offset my BCS mess. Now I'm torn, do I keep straddling up to make up for BCS losses, or take my BPS profits.
I'm leaning on rolling my 1000-1050 BCS, for a loss, Thursday and continuing to roll up BPS this week. If the market turns, I'm straddling and offsetting the losses. If it doesn't turn, I'm making up about 1/4 of my losses and my shares are going up.
