I bought 50 contracts at 1.06 and they are currently at 4.75. should i sell the lot, sell partial,hold till earnings? They are up approx 350%. Just wondered what people would recommend.
Sorry to disappoint you but i got out of 75% of that position on the 27th and closed out the last bit on the 2nd. Bought 25 contracts today of the same 47 call at 2.05. lol, i am sitting happy with my position as i am playing with your money now. Good luck longs.
You are up over 300%. Sell 1/2 (25 of your options today) - get your investment back and book a 100% gain....ride the rest till the day before earnings and cash those out. If you want to gamble more, wait a day or two....I think it will dip slightly next week early.....then buy back in at a out of the money call and ride those gains into earnings. Either way, a good rule of thumb is once you make 100% gain or higher....at least cash out your original investment money and ride the market money up further. This ensures you don't lose your money. IMHO......good luck on your trades.
Why are you in the market if you dont know how to play your stocks?Please read your yellow book:How to play the stock for Dummies.cuffs
P.s. You get the yellow boik at barnes and noble or books a million or waldenbooks or any national bookstore chain.
I'm always fascinated by people that cant even take the time to click on the auto corrected word, in there critiques of people. Its very simple. boik = book, not so bad, and waldenbooks is two words, Walden books, unless you meant the url for waldenbooks. Not sure why a question is sometimes met with so much hostility. Be nice and give a guy a break every once is a while.
Sentiment: Strong Buy
If you think it will rise, you are better to take profit and roll up. By rolling up, you sell all your contracts and buy roll them into otm options. Your current position is going to only go up a little less than $1 per $1 rise in the stock.
Now if you feel the stock is going to be flat or go down, I would sell and take a nice profit. One thing with options is they can move so fast and if for any reason this drops below 47, your position could fast be worthless.
If you are looking for it to go up and you roll and lets say you roll up so you are 5 otm, you will likely get similar returns for modest moves of 3 or 4 and larger returns if the stock moves $5 or more. You will also be able to book some profit plus have a free position to keep playing with. Good luck
I would suggest you hang on until expiration just before earnings after the smart money takes profits, then the calls will be out of the money and you make absolutely nothing. Always remember that bulls and bears make money, but pigs get slaughtered.
Well, there is other side too.
I had 30 contracts for jan 2014 @40.
They cost me $1800.
Was worth $400 the day before earnings. Was in a red for awhile.
The day after earnings, it was worth $3000. I was more than happy to book profits, but you know, today that would have been worth $37200.
I've left +$34000 on the table. Just saying...