Sell Alert: April 12, 2013
Sell Alert: April 12, 2013
Trade Details
Sell Amazon.com (AMZN) April $280 Calls for $0.70 or better
Why?
It’s a tough call on what to do with the AMZN calls. On one hand, the stock is clearly headed in the right direction and is closing in on our strike price. On the other hand, the options expire next week.
I really don’t like holding long OTM options on the week of expiration. Time decay increases exponentially in the final few trading days. As such, I think we should sell our calls here and conserve a large part of our capital.
Making the right risk management decisions will be very beneficial to our portfolio over the long-run.
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Category: OTW Sell Alerts
