Today we ended the session with a Bearish Engulfing candle pattern with a close below the 8ema. So we had to exit the futures position. Sold it for 25.86.
Held onto the June 25.50 Put Option. Unfortunately its currently down -$27 from where we bought it. So it didn't offer any actual hedge against the Futures loss, but probably would have if the stop was hit. But, the candle pattern we had today is bearish and if we continue downward in the days to come, then the Put will increase in value. The Put expires on May 22nd, so we'll have to sell it by then.
If what we're seeing on the chart is a Bull Flag, which is possible, then we may re-enter this trade on the long side.
Loss on the futures is 25.86-26.24=-.38*$600=-$228. Too soon to label this a losing trade because we could more than make up today's loss with the Put option. That's why I didn't use the word "Exit" in the title.
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