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Loser: 97.42% Loss On C Calls

Dec. 03, 2021 7:14 PM ETCitigroup Inc. (C)
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  • Bought the C 17DEC21 70 calls on Oct 5 at $5.04.
  • Sold the calls on Dec 3 at 13 cents for a loss of 97.42% on the trade.
  • 3% portfolio allocation.

I bought the C calls on Oct 5 when it looked like the shares were ready to break bullish - the MACD was bullish, my Hulk Indicator was bullish (price bar was green), the shares were above both the 13EMA and the 200MA - there was absolutely nothing wrong with the entry on the trade - where I messed up was on the exit.

After entry, the shares traded sideways for four days at the $72.00 level - then on Oct 12 my Hulk Indicator turned bearish (the price bar turned black) - I didn't exit because the stock was still above the 200MA and the MACD was still bullish. 

On Oct 13 the stock held at the 200MA and rallied for two days and climbed back above the $72.00 level - but the price bar remained bearish - this should have been my signal to exit the trade at a small loss - but I held on thinking that the shares would rally above the $73.00 level (the MACD was still bullish and the RSI was back above 50). 

But then from Oct 19 the trend turned bearish - this was my second chance to get of the trade with a small loss - looking back I have no idea when I didn't sell. 

On Oct 29 the shares broke below the 200MA and a waterfall decline began that brought the shares all the way down to the $62.00 level. 

A poorly managed trade - and with options you usually don't get a second chance to exit at a small loss once the trade starts to move against you - I did get one but didn't take advantage of it. 

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