Trading option to exit and reenter on pullback

[nickola.pazderic]

As noted previously, I've been trading in this mean-reversion manner since silver collapsed-- but with SPY, not IWM.

I made regular solid returns on the options during three "round trips."

However, this Monday, I had my single greatest ever, total dollar gain shine green on my black/blue ToS screen.

I knew I could sell my entire position but I held, reasoning that a breakdown to the 200 DMA was more likely than not.

Since then, I sit through a draw down that has seen the value of my puts move about 25 cents below my purchase price. In essence I'm precisely where I would be had I have sold the puts on Monday.

This is especially true insofar as I took the rally yesterday to follow the Robot for the first time and establish a short position at precisely the entry point in IWM, as directed by the Robot.

Pascal's comments on his backtests gives me reason to reconsider my doubts about my decision not to sell on Monday 23. I also hope the Robot and conversation here will allow me to operate with greater precision.

Many thanks,

Nickola Pazderic