Results of: A promising straddle

Hi friends,

This is the post that gives the results of my straddle trade detailed here: https://steemit.com/finance/@mwanacomete/a-promising-straddle

To recap, I placed a straddle trade (the buying of a call and put on the same underlying at the same strike price with the same expiration date), expecting increased volatility. The underlying was BMY. The purchase price was $1.41 per contract. I bought one contract (it was a low conviction trade, and straddles are an expensive strategy).

Things started out well, and I had a modest gain, as market-wide volatility spiked and BMY fell a couple of points, taking it below the break-even point necessary. When that quieted down, BMY ground higher and regained most of what it had lost.

I closed the straddle out this morning, to limit my losses. My max loss possible was $141 per contract. I sold at $.55 ($55), resulting in a loss of $86, or 61%.

Losses are part of it. Managing losses -- financially and psychologically -- is crucial to being a long-term, successful trader. That is my goal :)

The results of all my trades posted on Steemit (and some additional ones that move too fast to broadcast) are being updated here, experimentally: https://www.icloud.com/numbers/0yrD3oxIhcCOA59PS7csVPffg#.mwanacomete.s_Steemit_Portfolio.

Bye for now!