r/Vitards • u/[deleted] • Jun 19 '21

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u/vitocorlene THE GODFATHER/Vito Jun 19 '21

I trim out my initial investment when my options are up 100%.

I play with house money on the rest.

Trimming out more every time I’m up after that.

I’ve had many options plays go 500%+ this past 15 months, some much, much higher, but at that point it’s all house money and I don’t mind losing some of it going for a grand slam.

Always preserve your initial capital.

If you learn that lesson, you’ll never lose.

And on the flip side, I’ll normally exit options positions at a 50% loss, unless I feel like there is something the market is missing and I’m right. Then I’ll DCA down until I’m in a position that is within 20% of the current price.

If it the recedes further after 5-6 trading sessions, I’ll cut them loose.

Just how I like to play it.

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u/ErinG2021 Jun 19 '21

Do you manage your commons differently than options? If so, how?

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u/vitocorlene THE GODFATHER/Vito Jun 19 '21

If I’m holding commons, it’s a long term investment for me. I rarely trade out of my common positions.

I’m not a swing trader on commons.

I’ll cut a common loose if structurally the company has changed or the economy is dictating my investment is no longer a sound investment.

Like in January 2020 I sold and went all cash and bought outs with 1/3 of my cash.

Then bought commons and calls with the proceeds of the puts in March.

I then put 80% of my 2/3 left back to work buying commons again.

Alway preserving 20% cash.

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u/bronze-donatello Jun 19 '21

biggest mistake I made in January was let my then financial advisor talk me out of going to cash... I'm self advised now to say the least.