Here is a learning for me that I want to share with others. Maybe you won’t make my mistake.

After the Market outlook from April 30, I added a short put vertical on MCD following David’s Market Outlook Trade Example. Sometimes David says that a particular vertical trade has too much credit, so he enters the trade as stop/limit and reduces the amount of credit to get higher probability. He specifically said this about the MCD trade. He wanted MCD to show some follow through after the big breakout day. This would give higher probability. But, I wanted to get even more premium, thinking more is better. So I entered a limit order with even higher price thinking that MCD would bounce down a little the next day. Well, IT DID go down, but never bounced.

David was absolutely correct. I understand now why he trades premium for probability. And, I have a June vertical that is losing money.

Karl