Closing Positions:
Closing positions are recommended when we decide to take profits / to prevent additional loss.
Let us look at a real example from one of our previous alerts:
On 8/06/08, the following alert was given...
Closing Position
This position has reached our price target and we will take profits on this position the following business day:
Buy to close the LEH AUG 5 PUT / AUG 25 CALL for 0.20 or LESS, for a net gain of $0.80 or better.
And cancel both contingent orders:
Buy to open (.LYHTU) at market, contingent upon LEH LAST LESS THAN $6.50 G.T.C.
Buy to open (.LYHHR) at market, contingent upon LEH LAST GREATER THAN $24.00 G.T.C.
You may wish to hold until expiration, however we recommend taking profits at this level.
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To place this trade in your optionsXpress account you would do the following:
1. Click "Xspreads" under the "Trade" Tab.
2. We would stay in the Default "Spread" Screen and enter the trade as shown. We would click preview when done, and hit "Continue" to place the trade. Please note all the areas where action is necessary.
Here are some other Closing Position alerts which were given:
On 7/06/08, the following alert was given...
Closing Position
These positions have reached our price target and we will take profits on these positions the following business day:
Buy to close:
CAL 17.5 CALL (.CALGW) for 0.05 or LESS, for a net gain of $0.75
YGE 25 CALL (.YGEGE) for 0.05 or LESS, for a net gain of $0.35
FRE 17.5 CALL (.FREGE) for 0.05 or LESS, for a net gain of $0.20
You may wish to hold until expiration, however, we plan on opening a few positions next week, so we recommend taking profits at this level. |
To place this trade in our optionsXpress account we would do the following:
1. Go to the "Trade" tab again, but this time we will click "Options".
2. We would enter the trade as shown, and click preview. Please note all the areas where action is necessary.
3. Now we perform the exact steps to place the other Closing Orders. Please remember to follow through until you get to the confirmation screen, and you are done.
Congratulations, you can now place 2 different Closing Orders.
Opening Position
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