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RE: [HIT 002] 3Q17 Options Trading

in #investing7 years ago

OK i always sell the option to collect the premium. I rarely buy it back before it expires unless the cost has gone to less than $0.1 ie $1 to buy it back. Fidelity will do that trade for free. I only generally do it if i need to release the funds to be able to do another option sooner. But life usually gets in the way and the options expire more often than i buy them back early.

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Please check out the next post, [HIT 003] Position Types-Short Put Vertical. It explains why I use it instead of just a short put. There are 3 quick reasons:

  • IRA's require it.
  • It limits risk so one can have several positions per amount of risk.
  • Exiting at 50% of Max Profit allows for more than monthly turn-around and thus a fair bit more profit over time.

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