Taking Profit
Taking profit means reducing or closing a profitable position to realise some or all of the gain.
Why it matters to you
An options position's remaining opportunity should be judged from its current price and current risk, not solely from the original entry. A position that has already made 200% does not automatically need to be sold. Nor does it automatically deserve to be held. The relevant question is: Would I still want this exposure at today's price, with today's Greeks and today's remaining risk? Excellent cross pillar concept. Cutting losses