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Author Message  snorter Member Username: snorter Post Number: 2 Registered: 01-2004 Rating: N/A Votes: 0 Monday, March 08, 2004 - 12:56 am:     G'day all. From reading options & derivatives and mainly "option exit strategies", I gather many exit both winning and losing trades after option market price drops by 20% for eg. Assuming this is due to a pull back and the trend resumes, at what point do you re-enter, maybe with a different series? This would be usefull imformation for when you've missed the original entry also. I'm not sure if it's "the done thing" but maybe people could give past examples with NAB for eg. (just so we're all talking the same language) to demonstrate graphically. Thanks  palace Member Username: palace Post Number: 252 Registered: 06-2003 Rating: N/A Votes: 0 Tuesday, March 09, 2004 - 09:27 am:     hi snorter cant answer your question,as to date i have only written a few options, but welcome to the forum maybe BUNDY will answer your question mick  bundy Member Username: bundy Post Number: 235 Registered: 03-2003 Rating: N/A Votes: 0 Monday, March 15, 2004 - 04:30 pm:     Just to clarify, I never set out to exit a winning position on the way down - I always try to exit it on the way up. Might sound dumb - but if you trade volatile stock that are highly leveraged and frequently gap, the next day can easily turn your profitable trade into a losing trade. I've only ever had that happen to me once - and it was one of the first refinements to my trading plan. In hindsight - it was probably one of the best rules I implemented - as I have gone through two trading buddies in the last few years that dropped out primarily because they allowed their profits to turn into losses. Ok, so having gotten out of a trade - I am more than happy to take 50% -70% profit overnight - I won't double dip on the same move but wait for a pullback and then a new entry signal that meets my various criteria - including adequate time, IV and fair value, etc as set out in another thread. Quite often, after a strong move, IV might rise and the options become over-priced - in which case I will not re-enter but may consider the alternative of writing the opposite leg - but I much prefer to buy during a trend. --- Bundy Good judgment is gained through experience. Experience is gained through poor judgment.  snorter Member Username: snorter Post Number: 3 Registered: 01-2004 Rating: N/A Votes: 0 Wednesday, March 24, 2004 - 03:04 pm:     Thanks palace & bundy.

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