Replies to post #11876 on Direxion Daily Gold Miners Bull 2X (NUGT)

[imiloa]

Doprider, when we open any options trade, we are innately betting our money on our prediction of a directional move.

we hedge/straddle/strangle because we know the winds can change in a heartbeat.

re: 3% out, i prefer larger gains per trade than 3%.
so i choose my option positions carefully,
hedge my bet with balancing positions in opposite direction,
cover my cost basis asap, usually intraday,
and let the rest ride a day or two in case there's a large move.

in this case, i exited a chunk of my puts today,
taking profits to cover cost basis,
and let the rest slide overnight,
on the chance NUGT will drop tmrw
after the red candle amid high RSI/STO today.

your mileage is welcome to vary...