Hi traders. we are approaching the 1/2 way point in the this option period. It is the time that I review my positions and start giving serious thought to rolling up. But that said, I want to avoid jumping in to soon. As I said in an earlier post. Nearly all of my losses occur because I rolled up to soon. So when your left brain says 'alright, it's time to roll up' make sure you engage the right side and ask if it might be a little early. Try to avoid risking your profits just to make a 'little' more.
These little things will make the difference between you and people that lose money in the option market.
4 comments:
G'day - when do you start looking to open new positions in the next month? Starting the week of 1/10 or wait until the week of 1/17?
Mark
Jerry,
Currently have Qty 10 - TCK at 45 strike, trading at 63.20. Premium collected 0.22, current premium 0.09
Currently it is not worth me rolling up as I would only profit $10 with keeping a 20% cushion.
What do your trades look like Jerry? Can you list them for us?
Newport... Yes I usually START looking during the last week of the option month. I probably let about 1/2 of mine expire and the other half rolled up. The determining factor is how soon the premium i have gets down to .05 or less. It isn't a hard and fast rule but by the time the premium is that low it just isn't worth waiting long before rolling. sosmetimes if the premiums drops quickly my roll-up in still into the current month.
If I had opened the position at .10 maybe .15, then I would let it expire but otherwise I would usually close it by then. Another factor is that by opening a new position to soon it adds TIME into the equation for the next period. Instead of 4 weeks it becomes 5 or more if I roll into the next month.
Fulgore--
current puts I now have
NFLX 135'S OPENED AT .45 now around .10/.14
CMG 180'S OPENED AT .68 now around .30/.40
CMG 185'S OPENED AT .58 now around .40/.50
So as you can see, I have some waiting to do. All three positions are earning over 2.5% so I have to be content to sit on them for awhile. I expect if nothing to exciting happen soon, the premium should start dropping.
Jerry
Jerry, Thanks for your post, It helps me to keep up with the pro's and see how you guys are doing. I will keep an eye on these.
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