My timing on the H&E Equipment (NSDQ: HEES) call purchase could not have been worse. We bought the calls just as oil prices were rolling over.

Despite the fact that just a fraction of H&E’s revenue is reliant on new oil discovery the stock traded down with the group. Earnings on Feb. 23 were much better than expected and I still like the stock. A lesson learned is to choose a strike closer to being in the money. These calls have not had much value for some time or I would have salvaged some of their value with a sell earlier. 

The Winnebago (NYSE: WGO) put trade has been incredibly frustrating and disappointing. Despite hearing cautious comments from Thor Industries (NYSE: THO) and most of the RV stocks falling hard, Winnebago only briefly fell below the strike price.

In retrospect I should have sold these puts at a small loss on Monday. Instead I held on thinking it would drop further. The puts expire tonight post close and do not have any time value left in them so will likely expire worthless.

In the unlikely chance that the stock falls below $29, the puts will automatically be exercised and you will be short the stock. If this happens, I would stay short with a $31 stop on the short position. I am still bearish in the near term on the RV stocks as profits are getting hit by higher costs and a slight deceleration in growth.

I take these losses very seriously and am continually analyzing what went wrong in a trade and how to improve our profits going forward.

It is always a rough day for me when we lose money on any trade but I am very excited about several that I’ve just added to the portfolio. The market has shown some cracks recently and I’m sharpening my bear claws to help us make some money even on down days.