Slope of Hope Blog Posts

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Taking Carefully Selected Profits

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There are instances when a chart has fulfilled 90% of its potential, and to be on the safe side, I like to take profits. Take FLR as an example, which I closed about 15 seconds ago.

Could it go lower? Sure. But I'm up over 100% on the puts I bought on this, and the risk/reward is way too out of kilter for me to be comfortable. Look at how similar the recent activity is compared to the last time it bounced. So I'd rather cash out and risk being wrong by a buck or two. I'd suggest you consider doing the same when you examine your own positions.