IWM trade consisting of verticals in NOV and DEC relied on a bottom putting most of my risk to the downside. Meaning I skewed the trade to have less risk if IWM jumped up and more risk if it failed to the downside. Just yesterday I was mildly profitable on this trade and actually have been for the past week or so, but of course greed kept me in against my rules of not holding a postion into expiration week. For this reason the extreme fluctuations of the gama cause deltas to swing wildly. I was to close to a downside threat and today nailed me only 2 days from expiration. I had to close out with a $74 loss ($45 commissions) being that if IWM dropped anymore my losses could quickly go to 200-300!
Takaway is to plan more decisevly and not trade into expiration week. IF i closed this trade Fri. last week I would have made a small $gain.
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