Take Profits or Hold Longer | How I Decide When Trading Options

Today, I'll explain how I decide whether to take profits or hold an options contract!

My Studio Equipment

Track: NOES - Like A Boss [Magic Release]
Music Provided By: Magic Records

Disclaimer: This content on this channel has been prepared for entertainment purposes only and is not intended to be used to make investing decisions.You should never invest in the securities of any companies talked about on this channel. Consult a financial professional before making any financial decisions.

#optiontrading #options #takeprofits

[VincentDesiano]

Press the like button if you've left money on the table...

[shockcityrocker]

I used to be terrible about taking profits. I learned my lesson the hard way when one of my positions, that I’m 1000 shares deep in, ran from my buy in price of $17 all the way $55, and has now come all the way back down to under $20. So this week, I’ll be taking profits on a few positions that are currently 100% up; even though I am confident in their future performance, anything could happen & these could retest their lows. It least if you take profits, you have cash on hand to deploy when opportunities arise 👍

[nothstalgicbudge]

I needed this video 3 days ago. Made a solid 2k a day when tesla has its run, and today I had a green position at 66% returns but didn’t see 4 figures so I held to red! It’s a very common mistake of mine after getting a few big gains that I wasn’t expecting.

[jusaverage]

I'm happy that you posted this video. I have this dilemma now, so hearing how someone else handles this internal issue helps me dramatically. Thank you for this!

[riseandshine]

I made a mistake this morning. I’m still getting used to when to lock in profits.

Basically had a 20 call ending today and stock started at 19.90. $100 contract that has $10 left and stock moved up in the morning. Instead of locking in $80 I thought it was gonna shoot up and it dumped all evening and ended red.

My logic was that if it was gonna moon this was the time and I didn’t mind sacrificing a little variance for that shoot. In hindsight, when I’m damn near close to expiry, I need to lock in any gain that prevents such a loss.

[thegalaxygod]

The thought is always "imagine if I stayed in"...happened to me with Tesla on Thursday...got out at 492 then it ran up to 505...but then imagine if it tanked...I agree with you....play it safe...better to be green when the dust settles

[eddieg]

I love it !! 👍, definitely the right thing to do, it requires self discipline, but for sure the right way to go.
Thank you for sharing the knowledge !! ✌

[thecoolkids]

This happened to me with an NRZ option last Friday. I sold it when the stock hit $9.30. It ended at $9.55... oh well, considering I bought it the day before around $8.40, I was pretty happy about the profits I made.

[phaattran]

Holy shit this channel is undervalueddd

[Blademan]

Nice trades Vince! I use the 8 ema and resistance for exits a lot like you. Always lookin for a nice simple but powerful trend to trade like that ROKU run above the previous highs there. I wonder if the 20% target will always keep the biggest trades from ever happening though? I don’t use the set percentage but I see it can be extremely helpful with small accounts and help steady gains! As with anything like even P/L goals, it’s a good way to help us be reasonable with our targets so we’re always pulling profits. A lot of our money comes from a handful of big winners so I strive to set myself up to let them run with the 8 or 21 ema exit signal wherever I can if the trend is nice and strong. Today I missed ROKU on the pullback into the triangle upper strand line it broke out of, as it didn’t pull in as far as I wanted to enter then took off without me! Lol. Ugh. 10 260’s were $2k then hit $5, 500 at the top at res. I played puts off the top for $280 but still bummed I missed that move after waiting all morning watching it setup. Oh well I was happy how I played it.

[NdudePYTC]

Can you make a video on how you find the individual stocks you are going to make a trade on that day when you are day trading? For example, how did you decide to look at Zoom in this video over something else like SNAP or something

[DCol]

Thanks for the video, I needed some reassurance after my last 3 trades have gone up to 150%+ without me, while I settled for profits less than 20% 😢 but my entries were horrible anyways and I was in the red for a few hours or overnight after buying my contracts. This stuff can be so stressful at times lol

[vikasarsid]

The best way of explanation, and live examples I have ever seen... 💯

[thetraderecap]

nice vid. do you have a video where you calculate your risk and search right options?

[valuu.]

my dawg vince w/ another fye vid yessirrr🔥🔥🔥

[eduardrod]

Awesome video as always! Thank you for sharing your knowledge and experience.

[wiseman]

For me say I have 3 month expire date and have a strike price $6 above stock price expecting a very big move. If it's up 30% in first week here I'm not going to exit. Now if stock is up 50% in one week here I might sell half. Profit target should be based on if you expect a big move or a small move. Expecting a small move 30% profit is great profit target in my opinion. Hope this helps some people.

[ronaldpinson]

If you only can afford a couple of options, best to sell depending on your goals. If you get 100%, could sell one and keep the last to see if it runs.

But if you can afford to buy a decent amount of contracts, scale out if you think it can be a runner.

There will always be more plays in the future…most plays aren’t going to turn you into a millionaire overnight.

[benfuhrmann]

Very curious as to why you decided to take profit, when the stock was clearly in a larg uptrend and nothing indicating it would bounce down? I have been heavily investing options for the past month and a half and so far so good, but I'm always looking to learn more so would love to hear your insight?

[Capt.SumTingWong]

Back in December I had a SPY $460 12/22 call that I closed on market open the day after buying it for a $570 profit (109.75%). Had I not sold it early it would’ve been a $3, 535 profit (680%).

Still gets me to this day.