Hey all. These are my first options trades and I guess it's beginner's luck but they're all up. Probably was a little easier because of the strong trend in the NASDAQ and DOW. It's kinda hard to miss in this kind of market. Reminds me of the good old days... ^_^ Anyway, I bought these calls: OCT GS @75 OCT OEX @540 OCT QQQ@30 OCT IBM@95 The OEX is up 5 points as I write this, GS (Goldman Sachs) is up 3, IBM is up 1.5, and QQQ is up around 1.5. Should I take my profits now? What are your opinions on this recent uptrend? I have a timeframe of 1-5 days that I've decided on but I think I should hold these options as long as they increase in value. Hold onto winners right? It's really weird. I feel kinda jittery. I want to hold on for the long haul and really profit from these but I don't want to lose any gains I made and just break even. I bought these stocks mainly because of the recent rally and I saw upturns on all of their 2 week charts. I confirmed the upturn by looking at lower timeframes all the way down to intraday. I saw a triple moving average crossover on each of my positions. The indexes and broad market were up as well. My guess is that the rally will continue onto Friday. Who knows... The smart thing might be to close out half of my positions. Sell QQQ and IBM off? That's probably what I'll do. Thanks for reading. Do any of you guys trade these stocks or options? How did you do on them? Are you going long? Short? Any gut feelings?
Go back to the drawing board and figure all this out before your next trade. If you do not know what to do next, you should not be in the market. Just my opinion.
Nicodemus makes a good point. Its right on. But I will share with you... If your unsure of direction you could always take on an opposite position in order to lock in all if not most of your already gained profits. This way moves in either direction will some what cancel each other out and you can calmly make your decision to either close the opposite posistion and stay in (visa versa) or just close all your positions and take your profits to the bank. yk
My personal incination is to be long puts... not calls... So I'd tell you to take the gain. I honestly don't know though, you need to learn to make your own decisions.... Long ge oct puts (37.5)