BUDGET TRADER CHALLENGE
I have updated the budget trader challenge page which can be found here. It has been a bumpy start to the challenge, but I’m using last week and this coming week to “warm up” before the May 1st official kickoff date anyway. Technically, it has not officially started.
EVEN A VETERAN SCREWS UP
It finally happened. I’ve been waiting for a really stupid mistake to happen for years, but on Friday morning it actually happened. I was trying to buy down the Starbucks JUNE 62.5 CALL option as the underlying continued to drop and I just wasn’t paying attention.
I had already purchased 75 contracts and I was trying to buy another 25 when I went to place my order. Somehow, I just didn’t realize it was RED and PLAINLY SELLING (it’s green when you’re buying). When it executed I saw “sold” messages hit my screen. I sat back and yelled WTF! I had just sold 25 contracts at a loss only to have to buy back 50 more to get to the 100 I wanted in the first place. Not only did I pay commissions on all of that unnecessarily, but I was charged a wash sale fee as well!!
This budget trading has really got me all screwed up. I have never made that type of mistake before, but it sure happened. I was humiliated, and had to take a break for lunch to compose myself.
My point is: if you screw up don’t worry about it or think you’re an idiot. We all do things that make us feel really stupid on a daily basis.
A wash sale fee is when you sell something at a loss and then buy it back within 30 days.