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Strategies & Market Trends : BEFRIEND THE TREND Short-term Options Trading Thread -- Ignore unavailable to you. Want to Upgrade?

To: SusieQ1065 who wrote (455)	2/4/2002 11:17:27 AM
From: SusieQ1065	Read Replies (2) \| Respond to of 4058

from Market MOnitor: 2/4/02, 11:11:58 AM OEX Feb 560 puts (OEB-NL) opened at 7.00 this morning and are now trading a skooch above 9.00 In other words, someone who may have bought a ten lot at $7,000 would now be sitting on $9,000 right now. What next? Take the +$2,000 per ten lot and run? Let the play breathe and hope for more? That is a personal choice to make depending on account balance size, level of personal risk, level of market experience, level of personal confidence and a few dozen other factors. However, ALL traders in this equation should have an exit plan near entry 7.00 as worst-case scenario. Letting a move like this turn to loss is a huge mistake that many traders make. They see a bit of profit reverse and go flat, then freeze. Maybe it will bounce back in their favor? Not likely: when a trade goes our way, always get back out at even if it moves against us from there. NEVER let any gains turn to net loss... protect capital at all costs! S&P 500 traders now sitting on 12 index-points gain, a very nice little move to start this week off in the black.