Managing Your Call Position
The easy part about buying calls is placing the order. In this chapter, you will do the hard part—manage your call position. After you place your order, you feel the most hopeful. Perhaps you have already calculated how much money you are going to make (always a bad sign). There are many choices of what you can do, which is why you have to keep close track of the underlying stock as well as the option.
As you remember in Chapter 7, I discussed why it is essential that you create a trading plan before and after any trade. A trading plan is a road map that helps you to determine when to enter or exit an option position.
What Can Go Right or Wrong
As the call buyer, you are in control of the right to buy the stock ...