Hi, I am pretty new to options and have a question about what I should do with a position I have. Yesterday I bought a GOOG Feb 430 Call for $23 and have watched it go up to $34 today giving me an unrealized profit of $11. I can now leg into a 430/440 spread by selling the 440 Call for $29, locking in a profit of $6 and giving me a maximum profit of $16 if GOOG is at 440 at expiration. Would it be better to sell the 430 Call now and realize the $11 or should I hold onto it and possibly sell the 440 at a higher price or even sell the 450? Any suggestions or recommendations are much appreciated. Thanks! -- Paccc
I would leg into a bull spread because I think the market is going going up. You should close the position because you have no exit strategy.
I do not like the legging into spread strategy cause it cap you gain also. The strategy is based on how far GOOG will move in what time frame. With trading u need to put money management first. GOOG gaps very often, money management is vital. GOOG will have earning out next week. The premium will be more expensive prior to the earning. I'd sell the singles & use part of the profit to buy out of money call spread to continue the participation. I have Feb 520/530 call spd that I bought on Friday. They are more than doubled, I am going to sell half today to get my money back & lock in some pocket change. It is for my peace of mind.