I received a great, and well-meaning question from a new All Star Options subscriber about a recent trade we entered in $VLO that offers a great lesson or reminder to those who need it.
Question:
What are your thoughts on when the value of your options hits a 50% gain in one day? The September 175 calls for VLO I purchased hit +48% yesterday. Do you trim/roll/close with such a quick gain? I understand this is more of a personal preference as it relates to what you want to make on a trade, but if you hold those 48% increases, they could eventually increase to +150%!
He kinda answers his own question in the end, but here is my response: [Read more…]