When to Take Profits

When To Take Profits

* These are general rules of thumb with the assumption of 45 days until expiration.

StrategyTarget % of Max
Credit / Debit Spread50%
Straddle25%
Strangle50%
Iron Condor50%
Iron Fly / Butterfly25%
Calendar / Diagonal Spread10 – 25% Indices
25 -50% Stocks and ETF’s
Jade Lizard50%
Naked Calls / Naked PutsSee table below
Source: Tastytrade

Managing trades

% of MaxAverage Days Held
10%3
20%6
30%10
40%15
50%19
60%24
70%28
80%32
90%35
100%Expiration
source:tastytrade

Managing Naked Calls / Puts

% of MaxDays Held
20%2
40%7
50%14
70%26
90%38
100%Expiration
source:Tastytrade