Fake Baked

After spending much of yesterday afternoon slashing risk out of my book, one after another exiting longs and long runners and yolos and their ilk, I spent most of today away from the markets.  The big move and reversal Tuesday rattled me mentally and after much introspective it was one position which elicited the strongest emotional response.  It was an oversized weekly option in FB.

Given the short dated duration of the position, when it swelled beyond 2% of my book only to quickly become 1% of my book a few hours later, the sheer volume of the swing occurring in such a short duration was a bit more than I could bear.

For example, I also have July DDD calls.  This position already caught a scale by Tuesday lunch, and when it faded it was a nonevent because I had time for the idea to pan out and the position was just a tad over 1% of my book after the scale.  I Midas touched this position again today, scaling another piece a few ticks off session high.

But I pressed the FB through lunch, opting instead to watch the Italians lose at soccer.  I knew I could avoid the urge to scale if I stepped back.  When it snapped back I cut.  Then I went on a killing spree with all the funky runners I had left in my book.

Bottom line: the size was too big for the short duration and sometimes I gather too many positions.  It becomes distracting.  About 12 is my limit.

After the fact: I was full on fake baked out of the FB and wow, it looks ready to rip.

May the buy flow continue rip the heads from social media bears, amen

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