Secret 21LET IT RIDE!

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Your goal, as established in Secret #20, is to hit home runs

in order to offset and, in fact, get above the many losses you will

inevitably have, especially if you buy cheap, out-of-the-money options.

You have to hit home runs in order to insure that your bottom

line will have a profit. To hit the home runs, you must let

part of your position ride, aiming for greater gains.

However, that is not to say that when your options show a

profit, you shouldn’t take some money off the table. My rule here

is to take profits on half of any position when your option doubles

in price, and let the rest ride!

 

Your goal, as established in Secret #20, is to hit home runs

in order to offset and, in fact, get above the many losses you will

inevitably have, especially if you buy cheap, out-of-the-money options.

You have to hit home runs in order to insure that your bottom

line will have a profit. To hit the home runs, you must let

part of your position ride, aiming for greater gains.

However, that is not to say that when your options show a

profit, you shouldn’t take some money off the table. My rule here

is to take profits on half of any position when your option doubles

in price, and let the rest ride!