Markets are firm this morning after a nice run-up into new highs last week. With volatility moving slowly lower and markets moving slowly higher, it is very bullish. This is the time to look at your portfolio and do some trimming.
You always want to hold on to your winners and cut your losers unless you have a strong conviction for holding on to those losers. As volatility moves lower, you will want to stick to longer-term trades like Monthly expirations.
When buying options, use expirations at least three months out so that decay is less of a factor. Diagonals are great for taking advantage of shorting short-term premium while going long, long-term premium.
Don’t listen to the doom and gloom pundits out there who make a living on creating fear because markets continue to move higher. Always have a plan and stick to it.
Founder | SimpleOptionStrategies.com
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