Thought I might start a discussion on the option calculators, limits, and how to properly use them. I use optionsprofitcalculator.com and it works out pretty well, but I honestly don’t know how to adjust the IV slider, or if it’s even necessary (so far it’s worked out just leaving it alone, but any way we can maximize gains, right?).
I know there’s other tools out there, figured we could post them, talk about properly using them, and also discuss exit strategy in general.
I’ll start, I find my PT, look it up on the calculator with my cost basis typed in, set the limits (usually 2-5 cents lower than the displayed target), and ‘forget’ it. I will very rarely move my limits/SLs up, there is the rare exception when cost is covered or profit taken and I have a runner, but 99% of the time I make the plan, then stick. to. it.
If something is dying and doesn’t look to be coming back, I’ll cut it, take the loss, and at least have some of that BP back for the next one. I had a real problem with revenge trading, lost a good chunk chasing tickers that ‘had’ to be green. Conq has also enlightened me to the power of averaging down, like I knew it was important before, but watching it save plays in real time was and is a whole 'nother level of education. In reality I should really have SLs set at cost basis, but that can be tough when the ticker is barcoding…so, how do you like to exit?