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Options trading profits are always on my mind – and I’m sure the same is true for you. After all, we are in this game to maximize profits on each trade we place. And that can become a problem.

The most wonderful thing about trading in the stock market is also its most dangerous: We have no limit to what we can earn. Without some discipline and planning, we can easily get swept away by possibilities of how much we “could” make. We can deviate from our plan. Once greed takes root in our minds, we can easily succumb to the pressure of “needing” to earn more profits.

Options trading profits: how much is enough?

When green pushes you to hold on to that winning trade, remember: Profits can be ripped away at a moment’s notice. Always take profits when you have them.

More reminders that will come in handy:

• You do not need to earn large profit on your trades to be a successful options trader.
• Keep your goals modest. Shoot for a 25-30% gain and make adjustments to that target if warranted.
• You can also book a profit and then roll your trade up or down if you feel the name has more potential.
• Listen to your instincts! I have learned to listen carefully to what my gut is telling me, because it is never wrong.

There is really no set rule to taking profits other than being aware of your current position and making a move when it meets your criteria.

Think of it this way:

When you are out fishing, are you going to catch and release perfectly fine fish while waiting to land “the big one”? The big one might never show up. Meanwhile, all these fantastic fish are just swirling around the boat. You can’t eat the fish you never catch!

Think about this the next time you have a profit and are unwilling to book it. Maybe this story will change your mind.

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