Delfino,
Yes, 80% is a good rule of thumb, although each trade is different. If you are holding a strike price where the stock has run and run, like I had FB in August @ 26, I had NO reason to pay the commission to close it, unless I needed the money for another trade which I didn't.
A good example of closing when you can is my closing V, DE and JOY last week for approx. 80%. Look at today...I entered my V 160's again, and don't have to worry about JOY's earnings tomorrow. I had the DE 77.5's, and frankly as it ran north last week, I was thrilled to get out.
It's all about the small profits that add up to a decent monthly income. Sometimes I even take 50% if it's a 2-3 day turnaround.
If you are underwater, meaning you are under your strike price and do not want to own the stock, rolling out a month is for me the best answer. Sometimes I roll out 2 or even 3 months. It all will come with experience.
Good luck! |
