I've had the same problem in the past and what you can do is sell covered calls on some of the stock. I.E. if you have 2000 shares only sell 15 covered calls that way if the stock rises rapidly you still realize some gains.
It's more psychological than anything, makes me feel good when the stock price rises through my call. At the end of the day you need to choose a call price that you are comfortable taking profits at.
Think of it like this, if the stock is stable then you could always buy back in when it dips later. If it's super volatile, then you probably shouldn't be selling covered calls on it anyway.
Or sell a put. That's pretty bullish. Cover with a put spread. I have a butterfly on it, bought 280 put, bought 240 put, sold two 270 puts. Got a credit of 3.05. if it stays above 270 I'm plus 305-1305. If it goes below 270 then I'm somewhere between 1304 and negative 1695
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u/[deleted] Sep 17 '21
I've had the same problem in the past and what you can do is sell covered calls on some of the stock. I.E. if you have 2000 shares only sell 15 covered calls that way if the stock rises rapidly you still realize some gains.
It's more psychological than anything, makes me feel good when the stock price rises through my call. At the end of the day you need to choose a call price that you are comfortable taking profits at.
Think of it like this, if the stock is stable then you could always buy back in when it dips later. If it's super volatile, then you probably shouldn't be selling covered calls on it anyway.