I believe most traders would have better results if they ignored B/E. Once you own a position, it's your job to manage risk and exit the position at an appropriate time. That exit point depends on risk/reward, probability of earning money if you hold etc. But the one thing that does not matter - is the price you paid to own the position. The position is either good to hold right now, at today's price, or it's not. Nothing else matters. I know that's a minority view, but it's the correct stance nonetheless. Mark
I tend to agree, I've had positions where I sold and then the underlying would turn against me for a day or two heavily and the premium would get close or double but I would still be very far away from the probability of being ITM. Reluctantly taking losses even if I still felt good about the position to stick to some arbitrary "system". That's why I'm here