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

Hey everyone. This is Kirk here again at Option Alpha and welcome back to the daily call. Today, we’re going to be talking about options trading golden rule number seven which is called opportunistic profit-taking. Opportunistic profit-taking is a little bit different style of trading and we’ve been doing this for a long time, actually before many people who are popular for talking about options trading and taking profits early actually started to come on the scene. And what we realized earlier on is that when you start taking profits early and you start being opportunistic with your trades, you actually end up reducing the volatility in your account and reducing the risk that the stock moves against you. Now, this means that sometimes you have to wait all the way until the end of expiration to take profits. Sometimes they might come early in the expiration cycle. But the reality is that rarely does holding all the way to expiration lead to the most profits. Now, what we have seen recently in our research las