A very simple and straight forward answer for me. For 25% in 5 days I would take my profit and run. Haing said that if you are an aggressive and active trader you could do what Micahel Catolico would do which is to adjust the trade to morph into a risk free trade such as a butterfly. While it is risk free for sure, but from there to get to a return of more than 25% is still not easy - it still requires a lot of luck or a great deal of skill, experience and intensely active trading style. If you are as good as Michael is, then you should go after that pot of gold, if not take your 25% return in 5 days.
----- Original Message -----
From: "doylegroup_
To: OptionClub@yahoogro
Sent: Monday, August 17, 2009 6:57:07 PM GMT -05:00 US/Canada Eastern
Subject: [TheOptionClub.
Last Thur AM I sold 3 Sep58/60 call spread @0.90 per. Later that day the underlying dropped so I added 2 Sep57/59 spreads @0.75 per. I got a total credit of $420 - $12.50 comish = $407.50, therefore I have $592.50 @ risk. I now after todays mkt drop have a 25% profit and have captured about 40% of the total potential profit for the trade. I see three choices with 32 days until expiration 1) let it ride 2) close out a portion of the trade or 3) close the trade with 25% profit in 5 days.
What would you do? Thanks in advance - David
PS: I know..I wish I had more of these types of problems.
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
No comments:
Post a Comment