The WAG trade has been just impossible. It has tested my desire to stay invested in the markets.
This taught me two things:
1. When IV is sustained at 95+ percentile. Something is up.
2. When shit happens, You, i.e a retail investor, will be the last to know.
Lergislative action forced WAG to abandon its invertion plans. But the big players knew this well before the newsfeed caught it. Information disparity. Timing matters to the few seconds.
http://blogs.marketwatch.com/capitolreport/2014/08/05/white-house-keeps-door-open-to-executive-action-against-inversions/?mod=MW_home_latest_news
The story took a turn for the worse the next day. It has wiped out all my gains from my trading this year. And then some to put it mildly. The stock has tumbled 21%, now I feel I should have gotten out at zero profit yesterday when I had a chance. This is a good lesson at minding the downside. Expensive lesson. I should get assigned by the end of the day. So lets see how that works out.
