[TheOptionClub.com] Re: When should I sell

 

Man,

With your apparent lack of options knowledge, you should not be trading options with real money. That being said, I will try to help you. Your option is the call leap on BAC, strike 20, expiring Jan 2011. It is currently going for 3.55 and you are very profitable. Assuming that you were bullish on BAC when you opened this trade, your decision to close the trade should be based on whether or not you are still bullish. Ask yourself if you believe that BAC will go any higher in the near term. If the answer is no then close the trade and smile the smile of a winner. That was just one of a great many questions you could ask yourself. For example, if you believe that BAC is overbought in the near term and that it will pull back to near term support near 15 before then going higher then you could sell a near term call, like the Oct 18 for 1.30 and if you are right then buy it back when BAC gets near 15 taking what ever profit you can. And finally if you have no opinion on the direction of BAC then close it now and count yourself lucky.

Rick

--- In OptionClub@yahoogroups.com, "mandeep1233" <mandeep1233@...> wrote:
>
> I own 5 contracts of VBAAD.X that I bought at $1.68. I have no clue when to sell them and holding them for few more months is going to affect the return. Can someone please explain how Delta and all that stuff works with Leaps.
>

__._,_.___

Messages in this topic (3) Reply (via web post) | Start a new topic

Messages | Files | Photos | Links

The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

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

Recent Activity

•  27
  New Members

Visit Your Group

Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___