When Should I Close My Position Early If Stock Price Moves Up?

10/10/2014 8:00 am EST


Alan Ellman

President, The Blue Collar Investor Corp.

Alan Ellman of TheBlueCollarInvestor.com offers a question and answer between him and a subscriber about whether or not closing out of a position early is a good move.

Question: I had the opportunity to utilize your premium report for the first time on Monday, August 18. I purchased 100 shares of Cavium (CAVM) and sold one option on that stock. On Friday, I bought back the option and sold the stock. It looks like it was a good decision but—because I am so new at this—I was hoping for a little feedback from you. I have read your book and read the exit strategy chapter several times. Any response would be very much appreciated. I have included a screenshot of the Unwind Now page of the Ellman Calculator. My numbers have the commissions built into them.

By Alan Ellman of TheBlueCollarInvestor.com

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