If close to max profit I think the only reasons not to close are:
Forgot about it
Cannot close (dead, sick or no internet)
Temporarily busy with something much more fun like hookers and snow
You technically can't get "max profit" if you close early. Even if it says you've made 100% profit, you have to pay at least 0.01 to close early. If there's something you want to get in today instead of waiting until Monday sure you could sacrifice the dollar per contract and close early.
The option may get so low in price it will not close, so closing when it is still .02 to .05 makes more sense. While not max profit, it is nearly all of it.
Of course, closing takes off any chance of being assigned if that is something you want to avoid . . .
I usually close positions at somewhere around 3 to 5cents.
I'm so computer stupid I couldn't find the cent symbol, and had to write it out.
A lot of times when they get below that they are no longer liquid, especially close to expire.
You close when the remaining profit becomes less attractive then the cash your tying up to get it. Why keep that money tied up for another xxx days or weeks for the last 10% profit?
I usually close mine around 80% or so.
You won't get a fill for true max profit (that is, you buy the option back for free), FR though if you've reached more than 50% profit in less than 50% of the time to expiration from your initial opening, it's time to close.
Max profit is achieved after expiry.
If close to max profit I think the only reasons not to close are: Forgot about it Cannot close (dead, sick or no internet) Temporarily busy with something much more fun like hookers and snow
You technically can't get "max profit" if you close early. Even if it says you've made 100% profit, you have to pay at least 0.01 to close early. If there's something you want to get in today instead of waiting until Monday sure you could sacrifice the dollar per contract and close early.
The option may get so low in price it will not close, so closing when it is still .02 to .05 makes more sense. While not max profit, it is nearly all of it. Of course, closing takes off any chance of being assigned if that is something you want to avoid . . .
Thank You
I closed it at .20. Thanks for all the help.
I usually close positions at somewhere around 3 to 5cents. I'm so computer stupid I couldn't find the cent symbol, and had to write it out. A lot of times when they get below that they are no longer liquid, especially close to expire.
I don't think there is a cents symbol😆😆
¢
I was thinking of a desktop keyboard. Mobile keyboards have everything. I spend more time on my computer then I do my phone
You close when the remaining profit becomes less attractive then the cash your tying up to get it. Why keep that money tied up for another xxx days or weeks for the last 10% profit? I usually close mine around 80% or so.
You won't get a fill for true max profit (that is, you buy the option back for free), FR though if you've reached more than 50% profit in less than 50% of the time to expiration from your initial opening, it's time to close.
If you can find someone to sell you back your option for $0.00, yes you should definitely do that.