Want Quick Profit? BBBY

So I hold a small amount of SPXU bearish ETF while expecting the market to grind higher.  The market was going higher and yesterday RIGHT before the close I saw a posting on a forum from a worthy trader:

Look at the BBBY chart
I bought calls for earnings tonight.

Whatever my mentality was at the time wanted me to tempt the jinx and take a gamble.  I went ahead and bought 3 Jan 62.5 calls.   A few minutes later, BBBY earnings was out and the price tanked!

Re: Look at the BBBY chart
Hope no one followed me on that. EPS was a nice beat, but low quality as BBBY bought back lots of shares. Guidance was in line. Not good enough.  I don’t know if it missed revenues. The chart was primed to explode upwards. Didn’t work out.

I surrender.  As of right now near noon time, BBBY was down over 6%.   That’s pretty much all of the ($561) premiums down the drain.  I just don’t get any break, do I?

You see, setting a target for my portfolio value is BAD.  It’s almost like a small version of “getting rich quick” mentality at play.  Oh, I’m almost there, I want to finish the year above $130K.  To get there quick:  Let me take a gamble, may be I’ll get lucky.   The trade goes against me; no, the portfolio is not allowed to go down because I’m so close to my target.  Blah, blah, blah…  This was what happened and I got just the opposite of what I wanted.

Meanwhile, SPY is up another .60% around 125, adding fuel to the fire.  This year is doomed.

UPDATE:

Market is now closed.  To add insult to injury, the whole day I was buying BBBY shares — to get even, you guessed it right.   It’s human nature and I’ve never learned that repeated lesson thus far.  59.18 held premarket, but it turned out to be the HOD once the market opened.   Gapped down and crapped until noon.  Since noon BBBY went down another 1.6%, and the whole time I was buying.   It didn’t bottom until 2 pm.   At that time I was down ($500)!   Look what someone’s 1 liner in a forum could do to your bottomline!!    Fortunately, it did bottom and I was able to be spared of a wipeout and came out with a small gain.  Check out the bottoming pattern, by the way, classic.  Failed at 1, but as usual, the 2nd try did much better.  Too bad the 200 day SMA at 56.41 was not too far away.  I was afraid it would be tested; otherwise, I would have gone in big at 2 or hold on to my position a bit longer.  Heck, I was just thankful I came out in one piece.

 

SPY ended the day up 1% at 125.27.  Not far away from YTD breakeven level at 125.87.  Surely it will get there, especially with the seasonality.  I added a ceremonial 100 shares of SPXU today.

Portfolio Value: $128,400

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