This time it is my bull call spread in Delta Airlines (DAL).
music selection: “Tyranny Of Steel” — Iron Savior
Delta Airlines (DAL) is seeing a lot of reduced air traffic driven by Corona Virus fears. Shares have been savaged. I have gone from being well in the money to out of the money in just a few trading days. The one month chart now confirms the trend is working against me. My normal stop loss is 50% and I’m not there yet but all signs point to further downside for this troubled stock so I closed today.
I originally opened the 50/52.5 strikes bull call spread with 20MAR2020 expiry on 16DEC2019 at 2.184 per share pricing. I closed this morning at 1.26. Across 6 spreads I lost 554 dollars against 1,310 at risk for a 42% loss over 72 days.
It hurts to take losses but a wise Lizard recognizes he will never win them all. In the words of George Soros “It isn’t so much whether you are right or not but how much you make when you are versus how much you lose when you aren’t”. Stop losses protect my profits and must be respected. Defense matters. I hope the transparency to report losing trades is refreshing.
Devour your prey raptors!