STLD - Stopped Out of Put Options

We were stopped out of the STLD Nov. 50 puts at 3 1/2. These puts were purchased at 4 1/4, so we ate about a 17% loss, which is right where we wanted to have protection too.

Here is some great real time experience for you about exactly how important stops are in protecting your capital, and this is especially true in option trading.

Without this stop, we would currently be sitting on these puts at 2 1/4 which is almost a 50% loss.
Not to mention that the stock looks to have broken out from a triple top on heavy volume, so it should continue to rally.

Nobody ever likes taking a loss, but they are something we all have to get used too and in the event we are in error on our analysis, as was the case here, taking a 17% loss really is much better then letting it bleed to 50%.

So, I will say it for the 100th time.... USE A STOP and protect yourself. Tell yourself this over and over to get it into your head because there are still times I might not put a stop in (very rarely) and most of the time I really wish I had!!