Exit Strategies for Call Options

[SlimBarnfish]

I have a question for SOL and all you other expert option traders. I’m fairly new at trading options and pretty much limit myself to buying calls that are listed in the Market Update newsletter. In the past, when I’ve dabbled in buying call options, I’ve made some mistakes with the timing of exiting plays. At times, I’ve stayed in too long and watched my profits diminish. I’ve also got out of plays too soon and missed out on additional profits. In the last Market Update Portfolio (Feb 28) SOL states that risk takers can purchase the AVT Aug 2021 40 Calls, which I did at the recommended stock price. Since this is not an official play, I don’t have the invaluable guidance of SOL to follow.

The play is in the money, with the stock price at around 40.25, and the option up over 53%. So my question is, are there any general guidelines to follow pertaining to exiting a call option, or is it all based on the performance of the individual stock along with other factors like time decay? I’ve seen some of the gains on past call options in the newsletter at 100%, 200% and a lot more. I’m hoping not to make the mistakes I did in the past when exiting the play.

Thank you in advance.
Kenneth

[AstuteShift]

No one ever goes broke taking profits

I usually take profits at 100-150 percent

Since I do leaps mostly, I re-evaluate the trade at the 6 month mark

The most important is placing the same amount of money per each trade. Therefore losses are kept Minimal and winners are big

[SlimBarnfish]

Thanks a lot Astute. I've never had a 100 percent profit with a call option, but I'm going to keep on envisioning it. The more I learn, the better my chances. It's nice being able to glean bits of info here and there in these forums. It all helps.

[SOL]

Thanks a lot Astute. I've never had a 100 percent profit with a call option, but I'm going to keep on envisioning it. The more I learn, the better my chances. It's nice being able to glean bits of info here and there in these forums. It all helps.

When you exprerience your first big 100% win it will feel great but don't let it get to you. Never allow greed to take over. And I suspect you will experience your first 100% winner faster than you think.