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Correct Time to Buy and Sell an Option

Posted By On 1/04/2010 01:42:00 PM Under

One has to be alert to the price moves while trading in options and one needs to keep following rules under observation to be able to last long in the options market:
(a) Exit an option if it falls by 50% of your purchase price and do remember to take this tough decision.
(b) If the stock makes a sudden move in positive direction, be on the lookout to book profit and do not become greedy. During small moves one can exit even with 5% profit.
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