Max Pain... Not Just a Weak Ass Movie

When Tait and I started trading, we made a few rules to live and die by.  One of mine was NEVER trade options on Options Expiration Friday.   -guess what?

F-UP #1

2:40 Tait "We should buy Bank of America.  It goes on a 10 cent run, we'll double up."

        Wade "I don't want to trade July's today."

        Tait "I'm buying 50 CALLS."

        Wade "I'll buy 35."

2:45 BAC drops 3 cents.

        Tait "Be patient."

2:50 BAC drops 5 cents.

        Wade "You're a douchbag.  We should have bought PUTS."

4:00 BAC is done.  I cancel my reservations and go to Costco to eat samples for dinner.  Nice Trade.

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F-UP #2 - I entered CTRP, or should I say it entered me.

Wade's about to buy CTRP AUG PUTS.  Watching the market, Skyping Tait, when the car place calls with a quote on some new tires. 

While I'm doing 3 other things, I place my trade.  After it fills I look at my account screen.

WTF - "Dude, I placed a market order instead of limit - I swear I had 'limit' selected.  No biggie, just bought 10 contracts at the Ask price WITH A 30 CENT SPREAD!"

WTF #2 - "F-ME!  I just bought JULY'S!"

The expletives pour out of me like beer at a frat kegger.  Muted laughter out of Tait.

Been trading a while now - never hosed it like this.  Only dropped $300 in 5 minutes.

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If you see a muscular bald guy on the news for robbing a bank in Atlanta, don't worry, it's just Tait reloading his trading account. (Hope it's a Bank of America)

WADE SOLD - 12 JRCC (Aug) $15 CALLS for $3.50 (1740)

WADE SOLD - 3 ICE (Aug) $90 PUTS for $6.60 (-300)

WADE HOLDS - 2 CTRP $45 PUTS at $4

WADE HOLDS - 2500 JAV (Nice breakout today.  Ereska trial news possibly coming next week (about time - been holding JAV for 9 months)

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DOUCHE OF THE DAY - Fast Money and the two analysts who upgraded ICE just as a beautiful bear flag was forming.  Thanks douchebags.

PUNCH IN THE FACE OF THE DAY - Tait, followed by knee to the liver for BAC.

Comments

[Jeff]

Jeff set up for a nice douche trade going into next week. He holds 10 AIG Aug $12.50 PUTS. Volatility drying up and his PUTS are going down even as the stock drops. Huh? The options floor must know it's Jeff and they're F-ing with him. Stay tuned for next week. Oh, did I say his average cost is $2.75 and they're around $2.00 now? What a douche.

[jay]

OH Man reading this blog is like a blood letting. How nice it is to hear of others who make the same mistakes as I. It's amazing how not one second after you hit the mouse button the stupidity of your trade lights up your mind. I have Aug puts on the Q's that I did not get out of yet because I couldn'r believe anyone was buying into this Fnkg market. I think you guys should send out a trade alert before you hit the button so we a chance to take the other side of the trade. ROTFLMAO

I put your blog up on my list.

[W]

JRCC made up for the crappy Friday though.

Thanks for the add.

W

[Erik]

The Hardrightedge site on your blogroll:

What about it is most beneficial?
What about it or what part of it doing to follow the most, etc?

It looks interesting, but busy...hence I ask where u have found the meat n potatoes from it..

Thank you in advance.

I added you to my blogroll, and plugged ya on twitter, FWIW...

[W]

We like the trade suggestions - have had some good luck with some. This is the page.

http://www.hardrightedge.com/trader.htm

Like to review it in the AM with a nice cup of Starbucks - oh sh*t, sorry.

Thanks for the add - best call you've made in a while :)

[Erik]

change the print, to make it a lil bigger. (just a suggestion)

[W]

We try to keep the font size in line with our accounts - small.

It's gone up a point - which is more than most of your long positions.

Just kidding douche.