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Running past max loss this month?

Discussion in 'Options' started by Tps, Aug 29, 2015.

  1. Tps

    Tps Guest

    Given the movement/rise in vol, I have a couple of Sept. expiration trades that are past max loss. Is anyone letting their positions run past max loss under the assumption that vol will come out next week after the employment report? I trade the weirdor, and my shorts are at 1070 and 1220 on the RUT.
     
  2. ACS

    ACS Well-Known Member

    There's an old saying about when you assume things...
     
  3. Duane Glick

    Duane Glick Member

    I try not to second guess the market when it comes to reaching a max loss in a position . In the past I have and sometimes you come out ahead but sometimes just more behind . You're real close to your bottom short strike which means you don't have any room if the Rut would go down some early next week and vols then would increase . The employment report is at the end of the week which is a long time to wait with your position.
     
  4. Duane Glick

    Duane Glick Member

    I'm sorry I thought your short was at 1170 not 1070 you're in a better position than I thought .
     
  5. Gabor Maly

    Gabor Maly Well-Known Member

    One of my wierdors was as well past max loss last week, I did not immediately get out, managed to recoup some of the losses as market bounced back and then closed it out below max loss. So there could be instances when given probability and market conditions you decide to give it a bit more time. What is dangerous though from psychological point of view if this becomes a habit and you no longer adhere to your rules.
     
  6. tom

    tom Administrator Staff Member

    Dan Harvey told me he had a bad Weirdor trade in NDX and will never trade NDX again. He's going back to RUT Weirdors.
     
  7. DavidF

    DavidF Well-Known Member

    I heard John Locke say he had to close half his M3 position (the huge one) on the advice of risk control managers.
     

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