Introduction
In trading, it’s often the losses—not the wins—that make us better. Recently, I entered and managed a series of call option trades on ATRL that initially looked promising, but ultimately led to a loss. The trade itself wasn’t reckless—but a few overlooked details (and some misplaced confidence) turned an opportunity into a hard lesson.
Here’s the full breakdown, what went wrong, and the key takeaways for anyone trading options.
The Trade Breakdown: ATRL Calls
It all started with a covered call:
- Sold: ATRL 5/16/2025 82 Call @ 0.33
As the price of ATRL moved up, I decided to roll the position forward and up, expecting continued bullish momentum and hoping to lock in more premium. The roll involved:
- Bought to close: ATRL 5/16/2025 82 Call @ 3.18
- Sold to open: ATRL 7/18/2025 86 Call @ 3.45
At this point, I was in profit (on paper), and had extended the duration and strike. But the market turned.
When ATRL pulled back, I decided to exit the trade to limit further downside:
- Bought to close: ATRL 7/18/2025 86 Call @ 4.00
This locked in a net loss, and I quickly realized the missteps that led there.
What Went Wrong
1. I Ignored the Greeks—Especially Vega
ATRL was (and still is) a highly volatile stock. The Greeks told the story, but I didn’t listen:
- Vega was high, meaning changes in implied volatility (IV) would have a huge impact on the option’s value.
- When the market dipped and IV contracted, my sold calls increased in value even though the stock price had dropped.
Because I hadn’t respected Vega, I didn’t anticipate how much premium could swing just from volatility changes alone.
Lesson: High Vega = High sensitivity to IV. Selling options in this environment can backfire quickly.
2. I Overlooked Open Interest and Volume
The 7/18/2025 86 Call that I rolled into looked good on paper. But in reality?
Mine was the only trade on that strike all day.
There was no liquidity. That meant:
- Widened bid-ask spreads
- Poor price discovery
- No exit strategy when things turned south
I was the market. When I wanted out, there was no one else there to take the other side—except at a worse price.
Lesson: Always check:
- Open Interest: How many outstanding contracts exist?
- Daily Volume: Are people actually trading this today?
- Bid/Ask Spread: Wide spreads = potential for painful slippage.
3. I Rolled Without a Solid Plan
I rolled the call because the stock went up, not because I had a plan. I assumed I’d collect more premium and keep the ride going. But I didn’t ask key questions:
- What if IV drops?
- What if price reverses?
- What’s my new max gain, and is it worth the risk?
By the time I realized the trade had turned against me, I was trying to manage damage—not profit.
Lesson: Rolling should be strategic, not emotional. Before you roll:
- Recalculate your breakeven.
- Evaluate risk/reward based on Greeks and chart.
- Treat it as a new trade—not an extension of the old one.
Final Takeaways: What I’d Do Differently
- Respect the Greeks: Vega and Delta matter, especially in volatile names like ATRL.
- Prioritize Liquidity: If you’re the only one trading a strike, that’s a red flag—not an opportunity.
- Roll With Intention: Rolling should serve a goal (protect gains, increase probability, etc.), not just extend the trade.
- Set Exit Triggers: Define exit criteria in advance so emotion doesn’t drive decisions.
Conclusion: Lessons That Cost, But Pay Later
Losing trades aren’t failures—they’re tuition. This ATRL trade reminded me that even a well-structured plan can go wrong if I skip the fundamentals. The next time I trade a volatile name, I’ll pay closer attention to the Greeks, liquidity, and whether a roll really serves my strategy.
If you’ve had a similar experience—or want to avoid one—drop a comment or question below. The best traders learn together.