IF YOU'RE IN A PROFITABLE OPTION TRADE (BUY A CALL OR A PUT). WHATS THE BEST TIME TO EXIT IT BEFORE EXPIRATION
Agree with mellow You should always have some kind of nominal target (percentage) you expect from the position In case you dont, make yourself a proper plan
%%%%%%%%%%%%%% A profitable option; is much , much , much different than a profitable stock or ETF.Time is on your-my side on the latter[ REALTY,stock, ETF....., ]not the former ..............................................................................................................................................................................................................As the psalms say ''teach me to number my days..... wisdom''
If you are deep in the money, as long as you expect the stock to keep going up.. I guess time value won't kill you that much. But if you are not in te money and are reasonably profitable before expiration.. I'd say close the trade and run
I am starting to get the feeling that a 30% pop on a long option is pretty damn good, and closing it out to trade another day might not be a bad idea. What I have not been able to identify is whether or not this is market specific. I don't have the resources to backtest on intraday pricing, which might be a really good indication that I shouldn't be trying to trade intraday. That said, I have observed and experienced a pretty high hit rate looking for this 25% - 30% gain on long calls and puts traded in the hour-to-day range.
What I'm trying to get an answer to, is if you are deep in the money and expect the price to keep going up. I would want to close out the position before the expiration date. Is there any point before expiration , where the price is going up, the value of the of the option would stop increasing because of the time left. Thank you for your replys
I bought several calls on the SPY 3 days ago, expiration date 11/28/14. Today I bought more calls on the Spy expiration 12/20/14