Eoin Treacy's view

I had placed a break even stop on my Valeant Pharmaceuticals long positions, which was triggered at the open today when the share gapped lower before rallying back shortly thereafter to close up significantly on the day. This was a miscalculation on my part and Valeant was the only position I had a stop on. This also helps to highlight that while one should always consider what would have to happen to force a decision to sell, introducing stops might not be the best way to execute that decision. My long in the June contract was stopped out at $89.31 against my purchase at $89.78. The share continues to rally in a reversionary process and I will seek to re-enter the position on any weakness.