Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: katytrader who wrote (165939)	3/21/2012 12:08:09 PM
From: CommanderCricket	2 Recommendations Read Replies (1) \| Respond to of 206191

Katy, I struggle with your question about allowing an option to expire. There have been several option expiration weeks that are so volatile premium gains generated over months can be deleted in hours. I've watched it happen and didn't like the experience. Basically it all comes down to a gut check and having a bird in hand, versus two in the bush. Good arguments could be made to go either way. Michael

To: katytrader who wrote (165939)	3/21/2012 12:21:46 PM
From: Robohogs	Read Replies (1) \| Respond to of 206191

All the pro traders I read generally leave last week aline. I left $5K or so on table closing some things last week. I lost $3K not taking BKS off. Last month ATPG cost me similar amounts not closing. I close if position is over-sized and if spread on bid/ask can be negotiated easily. Or if news is coming. Jon

To: katytrader who wrote (165939)	3/21/2012 3:41:31 PM
From: Bearcatbob	1 Recommendation Read Replies (1) \| Respond to of 206191

"It's exit points which have often puzzled me when profits are taken a few days before expiration when (in my view) the puts will expire worthless." I do this often. Here is the logic. Let's say I am short DNR puts and I think they are going to expire. At the same time if I see I can buy to close and sell to open the next month and get my return criteria I will do it. I do this because there is absolutely no guarantee that return will be there following expiration. To me it is all about getting my desired return and being happy. Bob