横向整盘 sideway correction

Last week, the stock market was under sideway correction.  Actually that was a clear indication of a relative strong bull market. However, it was a diaster for option, especially for short term option.  I lost all the money that I gained during the previous two weeks, except two thousand dollars that I wired out to my bank account.  The direction of the stock market last week was actually in agreement with what I expected, a sideway correction.  However, I underestimated the effect of time and momentum on the value of options, especially the latter. Thererfore I paid a heavy price for my ignorance.  As to the near term, I expect an upswing movement at the end of the month and before labor day.  Hopefully I can regain what I have lost.

Lessons to be learned from this are:

1) Sell option if you expect a pause in stock momentum or a correction. 
Stock normally would pause after three to five days of upswing movement. 
2)  Sell option after a  first sign of a pause, no matter how strong the market is.

Option will lose value due to loss of momentum and time value in the correction. One can always buy back those options at lower premiums later.