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Investing Newsletter

Market Surge - Taking Profit - Selling Calls

Kevin Hamilton

Whenever the market surges like this, I'm looking for places that I can take profit, usually in the form of closing short put options that have approached or exceeded around 80% profit and still have a bit of time left on them. Closing them on an up move frees up capital and allows for a re-entry in case there is a subsequent reversion to the mean.