after the option doubled. See the attached filed that I copied from the option trader magazine aug issue.
Since the whole month issue is too large, I had to convert it from pdf to doc file. Then copy and paste to get the article out under ET file limit. Do not think that I am doing a good job converting the file since a few figures may be missing. I changed some file configuration for my easy reading. The article covers the strategy more complicated than usual. Is it the best way to manage the profitable options?
When my options move up to more than doubled I usually take partial profit to get my capital back with some profit. Sometimes I took the whole profit if I think it is going to pullback & buy a strike out later. For example of AET aug 35 calls that I bought @ 0.2 on 8/2 while the stock was @ 32.17. I took profit at 2 different time @0.5 & 0.77. The bid is 1.30 now with 1 more day till expiration. So taking partial profit left too much on the table. I can not help to think that there must be a better way to manage the profitable options.
Moving forward I have 4 different YHOO calls. 3 are over doubled except aug 30 calls that need a good movement today & tomorrow. Right now the bid is 0.
We can use Oct 30 calls as a case study to keep it simple. I bought them on 7/20 @ 0.55 when YHOO was @ 25.2. Now the option is @ 1.30 bid.
I am not interested to leg into calendar spread since it is a directional trade for me.
Thanks for any good idea!
Since the whole month issue is too large, I had to convert it from pdf to doc file. Then copy and paste to get the article out under ET file limit. Do not think that I am doing a good job converting the file since a few figures may be missing. I changed some file configuration for my easy reading. The article covers the strategy more complicated than usual. Is it the best way to manage the profitable options?
When my options move up to more than doubled I usually take partial profit to get my capital back with some profit. Sometimes I took the whole profit if I think it is going to pullback & buy a strike out later. For example of AET aug 35 calls that I bought @ 0.2 on 8/2 while the stock was @ 32.17. I took profit at 2 different time @0.5 & 0.77. The bid is 1.30 now with 1 more day till expiration. So taking partial profit left too much on the table. I can not help to think that there must be a better way to manage the profitable options.
Moving forward I have 4 different YHOO calls. 3 are over doubled except aug 30 calls that need a good movement today & tomorrow. Right now the bid is 0.
We can use Oct 30 calls as a case study to keep it simple. I bought them on 7/20 @ 0.55 when YHOO was @ 25.2. Now the option is @ 1.30 bid.
I am not interested to leg into calendar spread since it is a directional trade for me.
Thanks for any good idea!
