Terrible Day

I got hit with a double whammy today. Didn't get the job I wanted and had my worst losing day of the year all at once. Oh well, I have to keep moving forward. I am fairly frustrated because I had to get out of my short AMZN strangle because I would have received a margin call at some point. So even though I wanted to hold over earnings and thought it would reverse(my top short strike was 100) I had to exit and what happens after earnings? Stock tanks. AMZN was one of the main losses today which now cannot be made up by that drop I likely would have recouped all the previous days losses plus some more with the decrease in IV. Oh well, had to manage risk and at the time who knows it could have kept ripping higher, though likely not to 100 since that is essentially an all time high(also a reason I chose it as my short strike).

ISRG is another pain. The stock apparently had great earnings and gapped up HUGE. At around the 208 level I figured it had probably run it's course and people would start to take profits and I could ride it back down to test the gap at 200. I entered towards the end of the day and apparently people were still short and covering or just really like the stock cause it kept going up finishing at 215. My time line is to have it test it this month but i'd rather start out with a gain instead of a loss. There was another reason for my large loss today.

All my short positions got creamed today and I am sure I wasn't alone as the shorts scrambled to cover and kept the rally going, it was essentially straight up all day long. This was the rally into the extremes I originally wanted to have happen at 950 but obviously did not. I will likely get smacked for it and normally don't do this but I averaged up my SPY puts. I am holding September paper so I have some time and my target is the retest of 955. My only saving grace today was my Q calls and my corn futures position.

Going into tomorrow I am still short and will look to cut other positions into weakness as I see fit, with MSFT and AMZN disappointing and after having such a huge rally I can't imagine we don't have some profit taking into the weekend but obviously I have been wrong before. These are the draw downs I try to avoid but this was the perfect storm and I got pummeled.

Total Return 2009: 145%