Comfort Zone – Quick Comments for Oct 22 2014

A question posed this morning on my forum which I thought was worth sharing as I am sure others are in the same position this week after last week’s plunge.

Question On Taking Profits

Good day to everyone.

I suspect that many of you are facing a similar issue after last week’s plunge just before expirations Friday. I was holding many positions set to expire last Friday that were doing fine until the bottom fell out – so I rolled many of them out a month or more and down, if possible, so that I could roll for at least a small credit.

Fast forward to today – I now have many positions due to expire in Nov or Dec that have rebounded and I could close with a 50% profit. Example: AMZN puts sold on Oct 15 for $7.05 can now be bought back for $3.80 – 50% gain in 5 trading days. I hate to just leave it on for 30 more days as so much can happen.

If I buy to close positions like the above it will chew into my cash but I don’t have enough new ideas for good trades to sell to put the capital back to work. If I roll these positions back up a strike or two then I am taking more risk. So, what are or would you do with positions like these.

Thanks Karen

The rest of this quick comment is for USA Members.

Quick Comments – 11:35 AM

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