Write a reflection on small rocket option operations

The options for Rocket 260417call were bought starting from 10/16/25 and sold at 4 AM on 12/19/25, holding for over two months. Continuously bought more as the price dropped, accumulating up to 12 contracts at most, with the price once falling to $93 per contract. When sold, the price was $400 per contract, with a cost of $671 per contract, resulting in a loss of $2,710. The next day, the price surged to $790 per contract, and further gains are expected this week, leading to significant losses. Reflecting on the main reasons for selling at that time, to remind myself and strive for improvement:

1. Extreme volatility—rising for eight consecutive days, then dropping sharply for two days, followed by a minor rebound. Fear of further declines led to selling after reaching a psychological threshold" of minimal loss or small gain, missing the major rebound the next day.

2. Influenced by the "buy high, sell low" crowd in the comments section.

3. Overconcern about time decay in options, fundamentally due to insufficient understanding of options.

4. Exceeding risk tolerance, leading to unstable mentality.

5. Fear of losing again after a temporary recovery. Had the courage to average down during the decline, but after a 70% rebound and another drop, fear overwhelmed rationality.

6. The stock itself is highly volatile, generally following the market but occasionally outperforming due to news. Market makers repeatedly shake out weak hands, and the lack of understanding about time value in stocks—being able to hold is ultimately a matter of risk tolerance.

7. Checking the market too frequently, especially the comments. Most retail investors are irrational, chasing rallies and selling dips—as in point 2, the influence was too strong.

Next steps:

1. Given Rocket’s high volatility, if the market corrects, there may still be buying opportunities.

2. The Christmas rally is here, and the last week of December is unlikely to present opportunities. Gains from the underlying stock can still be realized—stay calm.

3. Be patient—both during declines and rallies. The latter is often more important. This options trade showed a lack of patience during the rally. Holding the underlying stock can be realized, but impatience with options gains stems from insufficient understanding of time decay. When gains are small, flat, or declining, time decay gradually erodes patience—unnecessarily so.