Knowing when to sell

Discussion in 'Options' started by SaigonTed26, Feb 9, 2012.

  1. Hi All,

    At times I sell my option chain when it's profitable, but I sell too early. Is there a decent method to use to enhance profitability? Before I did stop losses or sold at limits, but at times the option and stock go higher and I lose out. I know there's no way to call the tops and I know no one goes broke by making profits, but is there a better way to trade when my position is up besides just putting in a stop loss? Thanks! :)
  2. I would tell you to apply technical analysis to the underlying. Get out of your position when your moving avg, bollinger band etc. reverses.
    I am not a big fan of trailing stops personally.
  3. Anyone who has ever done options has been where you are at. You sell and watch the position go higher.

    There are lots of thing you can do but don't really know what you are doing now.

    If you are looking for a "secret" there is none.

    The Big Secret is - if you are making money be Happy.
  4. spindr0


    Apart from tea leaves, astrolgy, and Elite Trader experts, there's no magic answer.

    Consider scaling out of positions. With a gain, sell part of your position, locking in some profit and hopefully, repatriating your investment capital. Then run a disciplined stop on the balance, real or mental stop loss order.
  5. I always refer back to Elite trader experts, there are so many how can you go wrong?:p
  6. spindr0


    Thimbs up for the one who put the Idiot in Elite Trade! :)
  7. Hi,

    Thanks all for the answers! I agree with what people were saying, there is no magic cure for selling at the right price. I think, hey, as long as you're making money, it's all good! :)