How To Set Profit Target When Selling Puts

How To Set Profit Target When Selling Puts

My Option with MYOK was up a lot. It gapped up higher, but now is pulling back. There is always a possibility for things to get worse, and since right now I'm looking at a nice profit of $1,288, it would be fine to take profits.

My profit target is 70% of the Max premium.

So for MYOK:
- I sold this for $3.00 ($300) per contract.
- 70% of $3.00 is $2.10.
- So I have a buy limit order of $0.90, currently trading at $1.10.
- I sold 7 contracts. The goal is to make $14.7 per contract (7 * $2.10) for a total of $1,470.

If I closed the trade right now with about a $1,288 profit, I would leave about $200 on the table.

For my NCLH position, we can take a profit-taking order.
- Sold it for $0.30, and I want to take 70% of the profits.
- This is $0.20.
- This is a profit target of $0.10. It's actually $0.09 but I am rounding up because its best to round to 10 cent increments)
- Sold 30 contracts, and will make $20 per contract, totaling $600.
- This will be a $200 profit a day over 3 days.

So I will go ahead and place my profit targets for this and place an order to buy these back at $0.10.

You can place your profit targets after hours, you don't need to do this while the market is open.

I use a GTC order (Good Till Cancelled). If you use a day order, it will just get canceled at the end of the day.

Recommended video:
Day Order Vs Good Till Cancelled Explained - When To Use It:
https://youtu.be/Hnb1aBw426s

#calculatetakeprofit
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: https://go.rockwelltrading.com/my-trading-routine
📕Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: https://go.rockwelltrading.com/the-wheel-book
💻 Need a broker? We prefer trading using Tradier! Sign up here: https://go.rockwelltrading.com/tradier-brokerage
📈 TradingView is my favorite charting platform. I use the Pro Version: https://go.rockwelltrading.com/tradingview-signup
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.

Видео How To Set Profit Target When Selling Puts канала Markus Heitkoetter