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 |
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 |
Managing Naked Calls / Puts
| % of Max | Days Held |
|---|---|
| 20% | 2 |
| 40% | 7 |
| 50% | 14 |
| 70% | 26 |
| 90% | 38 |
| 100% | Expiration |