It figures. No sooner do I send out the trade, but the market reverses and has gone up 15-20 points. The suggested trade was the prudent thing to do and I would do it all over again. We have to preserve our capital. It's our inventory.
Hopefully, though, traders who didn't get the email alert for awhile will have taken a look at the prices and the option chain before putting on a trade.
If they saw the market had reversed, hopefully they didn't just blindly put on the suggested GTFO trade. Invariably, some will. Those who did not put on the trade right away, are in a position to wait -- or to close their position (if they choose) for over a $1.00 less (than the $2.70 suggested price).
The VIX hit 30.81. I don't know if that could be considered as capitulation, but, if the market continues up, it works for me. If it wasn't capitulation, who knows? Maybe the bounce was just because oil is down $7. That sounds pretty temporary to me.
Just because the market bounced 15-20 points, it doesn't mean it isn't going back down. So, if you are waiting to close the position, be prepared. There are still 2 1/2 days of trading left plus Friday's settlement.
Be careful, my friends. These are turbulent times.