I sold a Call option for Nov 15, 2024, with a strike price of 40 to lock in my gains. As AFRM continued its downhill spiral, I then purchased a Call option for Nov 15, 2024, with a strike price of 45. AFRM reversed course again and turned positive. I capitalized on the price difference by selling at a higher price and buying at a lower one, instead of holding onto the stock or option after the initial purchase.
In options trading, flexibility is key. Consider securing gains during uptrends, as market volatility can swiftly reverse direction. Prioritizing prudence over potential further gains allows you to reassess and target the next favorable entry or explore alternative growth opportunities.
Ultimately, your risk tolerance guides decisions on when to take profits or cut losses. Notably, AFRM's emerging profitability and double-digit growth potential make it a compelling consideration.
Modify on 2024-09-13 01:59
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