I am learning options and have made some money and know I will end up losing it one way. Do you hold your options for the week or do you close out daily and take the profits that day?
I have a few stocks and etfs and use my extra $ for options. I tend to buy up calls/puts with all the free cash because it’s a smaller amount, and not being able to buy back in for the day.
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what’s a profit?
Think of it like a hot potato or a bomb. Pass it off and take profit before it explodes
>I don’t really have a set strategy when it comes to options, I just go with my gut and whatever seems like it will make me the most money. Sometimes I hold onto them for weeks or even months, other times I close them out within hours or days. It all depends on the situation.
When you buy a call, you claim to wish to purchase 100 shares at your strike price.
Don’t fuck around with OTM 90DTE calls.
Sell those suckers.
Leaps, two years away, you spend 800 and hopefully you have 2000 by the time your stock is worth 55 to exercise the purchase of your all time favorite stock during a global depression.
Every paycheck I add to my dream., I also sell weeklies to drink myself into acceptance that I am not a winner, but a doer.
¯_(ツ)_/¯
Both
The fact you’re asking this question shows you got a long ways to go. But since you ask at least you ain’t as regarded as some of the members of this sub.
As for your question, that depends on the play you intend to make. I do both, close daily and hold. It all depends what your play is based on your thesis and what your exit point is. You also need to be capable of adapting should things go sideways and close early if you have to. Risk management is very important to capital preservation.
Or in the spirit of WSB – Yolo! Diamond hands only!
It depends if it’s short dated or long dated and if it hit a target or the profit is too good not to take profit.
I use ToS and try not to hold options overnight but that doesn’t always work out very well for me! I’m getting better hopefully do not loose all my money before I get it! I do tend to feel a lot better when I can get rid of an option that day. Every Thursday i buy options with a following week expiration date. I always Buy the ask and sell the Bid. I always try to just trade Tesla or Spy. I only try to do either of these because of the price movement and it’s become easier to understand just those two.
Right now with spy moving in that 370-380 channel i instantly take profit because your profit can be wiped in an hour.