Defense is a little like luring in a squirrel to take a nut from your hand. Sudden moves and the plan goes awry. But #Defense usually needs to be done boldly with confidence. Knowing what to do in advance helps with that confidence. Does that sound like conflicting thoughts? Defense is just as much art as skill, and I don’t always get it right. Bruce Marshall says it GREAT…when not done carefully, defense turns your trade into a Three Stooges trade. Perfect picture there. I have #ShortPuts on LRCX and put on some hedges yesterday. I woke up this morning realizing I had overhedged.
I have short Dec 8 210 puts, so you see the trouble I was in yesterday.
I sold Dec 15 200/205 BeCS against my position, in a size that cut deltas too much on my puts. So I rolled back half that hedge this morning (for a loss) just to put the deltas back to where I want them on the long side.
LRCX definitely my problem child right now, but I’m always ready to take assignment and work it through on the other side.