Since 2018, Sean has served the financial community as Chief Options Strategist for All Star Charts, sharing his unique style of options trading, leveraging the best-in-class technical analysis offered by the All Star Charts research team.
In all endeavors, Sean has been consistent in building a support system around himself and for others that he wishes he had when he started out back in 1998.
I took profits today in a Bull Call Spread on Robinhood ($HOOD). The trade was working, the options didn’t expire until January, and price action was moving in my favor… so why close it now?
Let me walk you through it.
I put the trade on June 2nd: a January 70/100 call spread, paying $6.25 for the setup. Today, just 29 days later, I closed it for $17.05:
Now, the most this spread could be worth at expiration is $30. So technically, I left some money on the table. If I held all the way through to January, I mighthave doubled my profits from here.
But that would mean tying up my capital for another 170+ days.
Instead, I walked away with a 172% gain in less than a month. Not bad, right?
Here’s the thing with Bull Call Spreads: once both strikes are in the money early, and the trade has made a big move in your favor, you’re in a situation where the upside is capped and the risk of giving it all back starts creeping in.
That’s not a combo I love sitting in for long.
If this had been a long call with unlimited upside? Maybe I’d let it ride. But with capped profit potential and the bulk of...
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