Friday, July 31, 2020

Another EPJ Daily Alert Subscriber Has a Big Problem

An EPJ Daily Alert subscriber emails:
 I know there is no science to this, but I’m up about 100k on gold call options (from the 20k up I mentioned in a question to you a couple weeks ago, I’ve done very well recently!!! and am now considering taking profits. The 70k upswing Monday, then 30k down followed by 50k down, then 30k back up today is starting to stress me out a little. I still have 18 months until expiration and I think I could make millions if gold goes up to $3,000, but I also don’t want to lose my 100k profits. 
What’s your opinion on taking profits for short term risk tolerant?  I know I have to be the one to pull the trigger, but you sometimes mention days like yesterday where aggressive short term traders might consider buying in (very nice call on that by the way).
RW note: Past spectacular advice does not necessarily mean future spectacular advice.


  1. Good strategy would be enough options to get back your initial investment and then let the rest ride.

  2. That should be sell enough options.

  3. Agree with Murray Sabrin here. If you can, just get your initial investment back. Don’t hold onto more than you’re willing to lose, if the market goes against you

  4. It sounds like this fellow has done very well, but it's just as important to have an exit plan as it is to have an entrance plan.

    Selling the closest to expiration first is a good idea if you want to limit your exposure to downside. Like the old song, "time is on your side, yes it is..." Well it is if you're expirations are far enough out. Any shock in between can be waited out.

    David B

  5. Some suggest having a plan for selling should be in place before buying.

  6. One should also have a plan for ending a lockdown before initiating one. Alas...


  7. Gold is not going down again. Make millions.