TOS - target hit, profits taken

GLORY TO GOD - ANOTHER WINNER!

Took profits today in TOS after it hit my target.

Here's the target:

You can see that the upper tail hit my target today (or got really really really close - think of targets like horse shoes , just get close). So, I took profits.

One thing to learn on this trade. I DID NOT have on a sell stop. A sell stop is used when you can't, or don't want to, watch the charts all day and get out manually when your target is hit. You can basically set up an order with your broker to sell your option once the stock hits a certain price, then it will automatically do this once it's hit.

I usually don't use these because I can eek out a few more dollars by getting out manually. However, I work now and today was one of those instances where the target was hit during the middle of the day and pulled back by the end of the day (when I usually trade).

So, I could have made more profit today and will most likely start using sell stops when I have a close target, like in this trade. Remember - always keep improving your trading.

Anyways, I originally bought this option for $2.65 and sold it today for $3.05, giving me a $0.40 profit, 15% ROI, in 4 trading days.

Not too shabby, could have been better using a sell stop. But, all is well and it was a profitable trade.

Time to find the next one...