Strategy: It's critical to have an Exit Plan

For every position entered, there must be a clearly-defined, preferably automated exit strategy for both profit-taking and stop-loss. These two exits must be defined when the position is entered, and contingency orders created where possible.

Exits for different strategies are given below.

Short Put
- P: Close out when cost of buy-back is down to 10% of initial premium.
- SL: If the stock hits the strike price, roll down and out if necessary.

Long LEAP Call
- P: ?
- SL: ?

Long Stock
Establish a core position, say x blocks, and a max position.
- Up: sell a block each time the stock goes up by 10%.
- Down: Buy a block each time the stock goes down by 10%, up to max number of shares.