4J·

Take profits?

At 70%, my call warrant on $AVGO (-0,94 %) is currently in the plus.

$DE000FA1LUB3 (-42,93 %)

I got in two days ago. Quarterly figures are due tomorrow. Investors seem to be optimistic.

What do you think?

Hold and wait for the quarterly figures, or take profits beforehand?

5 Commentaires

Epi@Epi

Hedge profits closely with a trailing SL. Then you are still in and out in time.

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Chris@Multibagger

This is quite a difficult question because of the choice of bill. It still runs for 2.5 months and has a premium of 10%. This means that even if the price remains unchanged, $AVGO must rise by around 10% by August to reach the current price +/-0. The impl. Vola is 45%. And if the figures are bad, the SL is of no use to you if we start the next day 10% lower. Due to the short duration, you have relatively little time to make up for a possible loss, as the premium will continue to be reduced.
At 70% in 2 days with the bill, I would take the profits and re-enter another bill after the figures, or at least sell a partial position and thus secure a partial profit.

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Seventrader@7Trader

Let it run

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WSB_1995@WSB_1995

@7Trader I think so too.

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Leopold T.@Tuffbet

Let it run. I would not work with stops given the expected vola and spread widening before earnings. You will only get unnecessarily expensive. At most, take partial profits

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