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Investing/Strategies / Options - You Make the Call


Subject:  Re: Question: Diagonal call strategy Date:  5/31/2015  1:10 PM
Author:  hookemhorb Number:  11065 of 11356

For me, my broker doesn't charge commission if the option is $5 or less. I would wait to sell at that point. But since I pay $1.50 a contract, commissions don't really factor into my decision making. I look at a couple of things. What is the loss in buying power for the option(s)? Can I put on another trade that would be more beneficial?

Anytime, I can lock in 75% profit, I'd jump at that chance to close the option(s). There have been a lot of times, I've turned a "profit" into a loss waiting for expiration when the stock moved unexpectedly.

For me, I want to make a little money for each trade while at the same time learning about options. I don't really follow GRMN, so I don't know when earnings are or if they pay dividends. I'd just be a little wary around when they announce earnings. I'd probably close the option.
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