When To Take Profits
* These are general rules of thumb with the assumption of 45 days until expiration.
Strategy | Target % of Max |
---|
Credit / Debit Spread | 50% |
Straddle | 25% |
Strangle | 50% |
Iron Condor | 50% |
Iron Fly / Butterfly | 25% |
Calendar / Diagonal Spread | 10 – 25% Indices 25 -50% Stocks and ETF’s |
Jade Lizard | 50% |
Naked Calls / Naked Puts | See table below |
Source: Tastytrade
Managing trades
% of Max | Average 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 Max | Days Held |
---|
20% | 2 |
40% | 7 |
50% | 14 |
70% | 26 |
90% | 38 |
100% | Expiration |
source:Tastytrade