To The Moon

Capital Management: Locking in Profits While Keeping Your Money Working

When a stock position reaches a 54.26% profit, it’s essential to manage your capital wisely rather than holding blindly or selling everything at once. A strategic exit plan allows you to lock in gains while keeping your money actively compounding.

Selling a Portion to Secure Profits

A disciplined approach is to sell one-third of your position when the stock reaches a significant gain. This ensures you realize profits while maintaining exposure for further upside. By selling gradually, you reduce risk and give yourself flexibility if the stock continues to rise or corrects downward.

In this case, selling 1/3 of Alphabet (GOOGL) at $204.24 after a 54.26% gain locks in a substantial profit while keeping two-thirds of the position in play. This method prevents emotional decision-making and allows you to manage risk effectively.

Reinvesting Through Selling Puts

With cash in hand from the sale, the next step is redeploying capital smartly. Instead of letting cash sit idle, selling a put option at the same price you sold—$204.24—can be a strategic move. This allows you to:

✔ Earn premium while waiting for a potential re-entry.

✔ Buy back shares at a discount if the price drops.

✔ Continue generating returns without chasing highs.

For example, selling a GOOGL put with a $204 strike price earns you premium income while positioning you to repurchase the stock at a lower price if it dips. If GOOGL remains above $204, you keep the premium as additional profit.

Buying Back on a Dip

Another alternative is to wait for a pullback and rebuy shares at a better price. Stocks often experience retracements after significant runs, and having cash ready allows you to capitalize on volatility. If GOOGL drops to $190 or lower, you can buy back shares cheaper than you initially sold them, increasing your holdings without deploying new capital.

Conclusion

Proper capital management means balancing profit-taking with reinvestment. By selling a portion at a high and then redeploying cash through put selling or strategic repurchases, you ensure your capital is always compounding. This approach maximizes returns while managing downside risk, keeping you ahead in the market.@TigerTradingNotes @MillionaireTiger @CaptainTiger @Daily_Discussion$Alphabet(GOOGL)$