That 26% drop in a day in SMCI last week, cooked my June options man. I know my July ones are gonna print but I left easy money on the table. This option strategy of mines is new and developing. I have great signal but I can’t get married to the read. I can’t let being right usurp risk management. What’s funny is I had an emotional reaction to discussing with someone recently, if I should sell the SMCI options for June, before the drop. I felt the emotion in my chest as I flat out scoffed at selling. That was a sign. Your emotional state tells you all that you need to know about how you are viewing risk. The ego has a defense mechanism for ideas that we hold deep, that subtly integrate with our identity, and it will only activate when it has received new information that contradicts that belief. The very emotional outburst itself is a signal that your mind has ingested new critical information that has changed the probability of that belief you are holding onto. But those are blackbox answers where the process behind that answer is not accessible. You don’t know why you feel how you feel in such a moment, you just know that you feel it. I’m trying think of a way to slow down my decision making process, so that I can catch these moments where my ego is relaying new information to me. I also need to trust my hit rate more and not look to maximize every play or really probably any play. I need to trust in compounding based on my hit rate and my fast in and out, gorilla warfare style investing nature. I was up 22x but wanted 40x. That’s a ridiculous anchor. Now I’m probably going to lose that premium for the June ones. I also was so confident that the deal was imminent that I felt comfortable with that 40x anchor. But we had a crazy two day volatility pop. Crazy how fast you can reset leverage, but that is the danger of spot up vol up. Minimal realized loss, MAXIMUM OPPORTUNITY COST LOSS though. I’m still processing all that I learned from this and how to integrate it into my framework moving forward. I think I got the risk aspect down, now I need to lock in on the Opportunity Cost side of things. It all started with the word, the word incites consciousness, and by focusing on the words, “Opportunity Cost”, and making it conscious, I already change the neural structure of my mind. I change my perception filtering mechanism to now curate for Opportunity Cost. Always write down your thoughts in some form or fashion, that’s how you can actually begin to do some magic in this world.