Quick assignment question...

Quote from jackinv:

I'm guessing that you're both saying concentrating on BE makes no sense because of all of the other factors priced into the option throughout it's life and you have to manage that risk day to day rather than trying to figure out where the the underlying will expire at.
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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
 
Quote from dagnyt:

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
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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".

Quote from KINGOFSHORTS:

You still need more learning before you start selling :)
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That's why I'm here ;)
 
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