crashy writes bhp calls, page-78

re: crashy writes bhp calls ... rembrandt Hi Jermaynew,
Thanks for your answers.
I have slowly been learning about ETO trading with the help (not always good calls) of a full service broker at Ords.
His most important point seems to be that you need to have a firm view on the probable movement of the underlying share. He points out that any strategy that lessens your risk also limits your potential profit.

I initially made a few big losses by not stopping out positions - now I seem to be too cautious and am closing out trades too early.

It can be hard to stick with the plan when the sp moves strongly in the wrong direction - your confidence that it will be where you hoped for at expiry can be sorely tested.

You are probably feeling that with your BHP position right now!!

Cheers,
Cloudstreet