NVDA
NVIDIA
112.690 TSLA
Tesla
262.670 PLTR
Palantir
84.910 AVGO
Broadcom
194.960 AMZN
Amazon
199.250 
Lesson Learned - 0DTE Liquidated Options!
$SPDR S&P 500 ETF (SPY.US)$ $NVIDIA (NVDA.US)$ $Microsoft (MSFT.US)$ $Meta Platforms (META.US)$ $Tesla (TSLA.US)$ $Advanced Micro Devices (AMD.US)$ Something Big happened on Friday Evening (US) and SPY Crashed Suddenly again.
In the Morning Section, most Stock hit all time High and call options printing money. In my gut, I am feeling insecure for staying at the top before I sleep (Midnight in Thailand Time). So, I closed all my call options at profit around 12:00 noon US time (Midnight Thailand). At the same time, I Setup 0DTE put option spread for SPY and 14DTE put option spread for META.
After I sleep, my phone got alarm and received email that one of my Put spread is liquidated due to margin call because of SPY sudden moved downward.
After the liquidation, I learnt that I should always close the position early at profits and always hedge against a position because anything can happen. Now, I don't have much position left because it has a lot of uncertainty which might bounce back or crash more on Monday. I rather sleep well at weekend without any position.
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I am still learning how to trade better because I lost 80% of my capital within 3 years.
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Cafe001 : Good sharing
Thelord : so how much you lost of the liquidated option
Cafe001 : When we short, we borrow shares and sell them. To close the position, we need to buy them back.
Buy_High_Sell_Low OP Cafe001 : thanks
Buy_High_Sell_Low OP Thelord : I only tested 1 contract and so lost only 450 USD! Reward is only like 50$ and risk was 450!
Buy_High_Sell_Low OP Cafe001 : right, I only short 0DTE put option at very far strike price but SPY go down so much and hit it....
Cafe001 : SPY options require active monitoring. Close the position once it's profitable, as the value declines over time due to time decay.
105251507 Buy_High_Sell_Low OP : better play normal option..call n put
Thelord Buy_High_Sell_Low OP : i see. 0DTE too risky
Buy_High_Sell_Low OP 105251507 : yeah
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