The setup was perfect. The only point I neglected in my strategy rules was that the options has to be below the threshold as I was taught. For this trade, the loss potential was 40% with a reward of about 70%.
I definitely should have passed up the trade for this reason, or at the least buy a counter option to minimize my downside risk. Most expensive lesson in options trading to date.
I will take extra caution in my next live trade. For now I will go into virtual trading.
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