Since I am a monkey, I don't always follow through with the original plan (see yesterday's post). In this case, as most times when I see gaps occur in price, I tend to change my thinking. In addition, I usually take advantage of any short-term double digit gain when I get the chance (not including gains from mechanical systems where I rely on specific signals).
You can see by the five day chart below that the SPY gapped down at the open this morning. It didn't look like it would follow through and continue downward so I expected the gap to fill. Knowing that the puts had been bought at a price of 1.80 and seeing them now at 2.55, I decided to follow my paranoid instincts and take the money and run with the 42% gain.
Does this mean the whipsaw pattern that has been going on will continue or dissolve? Only time will tell.
You can see that making a profit is more important to me than the need to be right.
Related Post: The Magnificent Sigmundo Attempts to Move the Market
