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Thursday, August 28, 2008
Matt's Trade Log - 8/28/08
Today's only trade: Sell 1 XLF SEP08 23 put.
I originally bought this put for $2.35 and sold it today for $2.19. I sold today because I got a sell signal on XLF.
I think the mistake I made here was accidentally buying the SEP08 put instead of one farther out. Even though XLF hasn't moved too much, the time decay of this option was so high this close to expiration that I lost $.16. If I was going to add the purchase of the put I should have purchased one with more time in the trade.
Oh well, live & learn. That's the cost of tuition in the investing world.
I originally bought this put for $2.35 and sold it today for $2.19. I sold today because I got a sell signal on XLF.
I think the mistake I made here was accidentally buying the SEP08 put instead of one farther out. Even though XLF hasn't moved too much, the time decay of this option was so high this close to expiration that I lost $.16. If I was going to add the purchase of the put I should have purchased one with more time in the trade.
Oh well, live & learn. That's the cost of tuition in the investing world.
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