Nobody Ever Went Broke Closing Out a Winning Trade

Well I just got back to Chicago after doing option seminars in Calgary, Edmonton and Morristown, New Jersey. One topic which came up in all three towns was when to close out a winning trade. Well what a nice problem to have.

With option expiration tomorrow I thought the timing was good to tell everyone that I always try and steer clear of hanging on to my profitable trades until expiration Friday. With option and stock traders jockeying for position sometimes it can create erratic moves in the underlying. If you have a winning trade that meets your profit expectation, think about closing it out prior to expiration. Enjoy the successful trade and let the rest of the traders fight it out tomorrow.