Trading Stock Options – The $1000 Bill Laying On The Porch

People often get too greedy when they are in a profitable options trade and hold out for more.  And they frequently lose their profit and even take a loss.

So when you are tempted to do that, just think of it like this.  It’s late at night and you are leaving a restaurant.  As you step outside, you see a $1000 bill lying on the entrance porch.  No one is around.  Are you going to walk on by, leaving the $1000 bill on the porch, muttering to yourself that you’re going to wait until you see a $5000 bill lying on the porch sometime?

I think not.  You’re going to pick that $1000 bill up right then and there.

By the way, this actually happened to me one night as I was leaving a restaurant I frequented a lot called Rusty’s, in Edwardsville, Illinois (St. Louis region).  Actually, it wasn’t a $1000 bill.  It was a big wad of cash, probably worth more — I didn’t count it.  It was dark.  No one was around.  You can bet I picked it up.

So when you are in profits on an options trade, remember this little instructive story – take the money and run.

Actually, what I did after I picked up that big wad of cash, was take it back into the restaurant and turn it over to the staff, in case the owner came back looking for it.

To your health and prosperity – and finding a $1000 bill or a wad of cash.


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