This evening I received an email from a member, John, discussing the importance of closing short option positions before they expire.
I cannot stress enough that closing short option positions early is key to earning higher returns. Selling options for income is a strategy of small gains. Those gains can be easily wiped out by one or two large losses. Closing a trade early and locking in the profit can assist in avoiding large losses.
This strategy article is 1700 words in length and will require 7 pages if printed. It includes some strategies for selling options for income based on early closing of short option positions (calls or puts).
This strategy article is for FullyInformed Members.
The Importance Of Closing Short Options Early – Become A Better Investor – Sep 18 2018
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk.