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Conservative option strategies, what did you buy or sell today?
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.
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Messages In This Thread
T puts ? - by john - 03-17-2020, 09:33 AM
RE: T puts ? - by fenders53 - 03-17-2020, 10:32 AM
RE: WEN options update - by john - 03-23-2020, 09:53 AM
RE: WEN options update - by fenders53 - 03-23-2020, 10:40 AM
RE: Conservative option strategies, what did you buy or sell today? - by fenders53 - 01-05-2021, 12:45 PM



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