It is with great sadness that I commit to eternal rest my BAC and AIG put that expired %^#$#!^ worthless today.
My thesis was that Fed rates would hold or even go up and that market would go down. Investment income would be hurt at AIG, but how was I to know that the hurricance season would be well a bust. Both BAC and AIG were experiencing rollover at the time of my purchase, but they did not roll. %#@#!%#% it.
Humorous Lesson: I should have gone out and bought some obscenely expensive wine and taken a bath in it and I would have had the same utility.
Real lesson: Never, ever, ever, buy a put or call option for an amount of money whose worthless expiration amount would make you cry. I didn't with either of these. If you are buying puts or calls, make sure that you understand your risks. I took a measured risk on both of these. I'm not crying. But the ouch factor is real.
2 comments:
I have generally done much better with longer term options (leaps) when making a macro-play. With volatility so low many of them are "under-priced" at the moment. But each individual "play" is by itself pretty risky.
I have taken some beatings from time-to-time myself, so I feel your pain.
Being early is the same as being wrong! Commiseration always helps. Thank you.
Post a Comment