The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about making the decision between closing for a small profit or rolling for small credits. This is again, a question that came out of our Facebook community, so if you have questions and you want to send in there, you can do that. You can also submit them at optionalpha.com/ask. But someone said, “Let’s say you’re a week or two out from expiration and you are nowhere near your profit target, but you are showing a small profit. Is it better to close the trade and take the profit or roll the trade for a small credit and try for a full profit in the next month?” This one's on the wire. This is an interesting question because it's ultimately a judgment call of what you want to do. Here's how I would think about it though. I think obviously, you could close for a profit and remove the position and bank a win. That seems like the default answer and obviously, in this case, if you're not at yo