Closed an APD strike 250 JAN 15 put. Sold on DEC 21 for $319. Just bought it back for $31. That's an 85%+ return in two weeks. It's important to take a profit when it presents itself. It will almost surely expire worthless if I hold it 10 more days but I don't have limitless funds for this strategy. This frees up $25,000 now. I can far exceed the $31 premium left on the table gave up even if I just sell some very conservative out of the money puts that expire in a few weeks.
This was just meant to be informative to new options traders. You get to pick when you cash out whe it goes well in a hurry. Some cash out with a 50% profit and that works too. Over time you pick your strategy. If I am confident in owning the stock I will wait for 75% return on average. I also let some expire worthless if I don't need to free up capital if I have no immediate plans that require capital. Occasionally you get a short term gift when you guess right. I truly did want to own 100 shares of APD at $250 but that's not going to happen short of a real hard pullback. Just going long would have been better but I'm here now.
This was just meant to be informative to new options traders. You get to pick when you cash out whe it goes well in a hurry. Some cash out with a 50% profit and that works too. Over time you pick your strategy. If I am confident in owning the stock I will wait for 75% return on average. I also let some expire worthless if I don't need to free up capital if I have no immediate plans that require capital. Occasionally you get a short term gift when you guess right. I truly did want to own 100 shares of APD at $250 but that's not going to happen short of a real hard pullback. Just going long would have been better but I'm here now.