Today is another Bonus Day inside of Tastytrade’s Options Crash Course, so we use this as an opportunity to discuss Managing Winners and Managing Losers. What we learn is that our default target on most short premium positions is 50% of max profit, and taking off losing positions at 2x to 3x of credit received is a sensible starting point. Then, we take another look at rolling, to see that more time does indeed mean more extrinsic value.
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