Should I take Profits at 70%? 50%? Something else...?

We might expand on this topic on the near future, but Fernando came to us wanting some advice on his management techniques.



For call selling (in the form of a collar), he claims he takes his profits at 70% of the max. expected and wondered...Is this a good approach?



Yes, but we discuss some of the thoughts on why this is a good approach and why it might not be a good approach.



We also share our thoughts on the dangers of the common taught practice of closing a credit spread at 50% expected profit...and how that can hurt your performance rather than help it.

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