The market went up like a rocket after this Federal Reserve vice chairman Richard Clarida said something that looked "dovish" to the markets about an interest rate cut the end of July ...
Other officials tried to "walk back" the remarks saying that this stuff was based on 20 years of research and not pointing toward the July 30/31 next Fed meeting ... but too late for me!
The NDX a.m. settlement is marked when all 103 underlying Nasdaq 100 stocks open on Friday a.m. ... I knew it looked pretty bad looking at the /NQ futures price, but I have seen anomalously low settlement prices (the symbol for this is XQO these days) sometimes and so had my fingers crossed ...
No good. XQO price Friday was 7955.76, so since I was short the 7900 call and got $542 of credit .... that's a $5007.24 loss ... out of a possible $7420 or so .... harrumph.
I won at least 12 or 13 of these in a row of these last year, just mechanically putting them on at 9:45 a.m. ... but I can't stand it any more.
The "trade small, trade often" technique I've been using for everything else has been working so well, I'm going to keep this trade but with the following restrictions:
- I'm going to put on not just NDX but also SPX and RUT a.m. settlements
- I'm going to risk a max of 25% of the account on all 3 combined
I had been risking up to 50% on just the NDX trade ... while it was working this was great, but this was beyond terrible timing ...
One little good thing that happened: BIDU came off on Friday for its 50% profit. Wheeeee! :-)
Back on the horse Monday with more trade small ... including a few earnings, I guess ...
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