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Options Trading - An Independence Day Poem

Posted July 2, 2010

Topics: Business & Management

I am a U.S. citizen, but a naturalized one. So I really appreciate the Fourth of a special day to celebrate The United States of America. It is easy to forget what it's all about when life is taken up with the chaos of daily trading and market watching. And so, a bit of perspective ...

I was confused by the jargon

Till Independence Day ...

It all fell into place

For the perfect options play.

 

This started in seeing a lady

Whose looks, I admit, enthrall me.

She made a phoning gesture

And mouthed the words "Call me."

 

My excitement abated, however,

And I was later dismayed

And was told she's a floor trader

Just signaling for a call trade.

 

And so my nice long weekend

Has turned from excited to dour

And what I'd hoped would be fireworks

Has become Triple Witching Hour.

 

Such is the life of a trader,

Who views a long weekend as posed

Not in time off for relaxing,

But days when the market is closed.

 

The solution, I think, is to figure

A way to beat time decay

And exercise all of my options

Before expiration day.

 

In the rush of a trading frenzy,

It is easily overlooked

That life is, indeed, like the option,

If out of the money, you're cooked.