Just curious about some opinions here.....
I'm going to use AAPL as an example since that is a common stock. Let's say AAPL isat 330-340 range and you purchase call contracts at 350 with 90 days or less until expiration. Within the first month of initiating the position AAPL moves to 355-360. What would you do among these two choices:
1) Roll one or all of the contracts up to 360-365 and lock in profit
2) Keep as is
I understand you're tradingfor gamma if you roll up so technically you won't make as much money if the momentum upwards keeps going. Alternatively, wouldn't it be better to take the increased gamma and lock in profit so if there is a setback you're also losing less?
I guess I pretty much answered my own question, but I'm curious to learn how some serious options traders deal with profit-taking.
Any thoughts would be much appreciated.