Pulled the trigger with a GTC order at 0.45. Trade executed when option went ITM. Delta on the option was around .53. I could have held on longer, but I decided to exit while I had decent gains on my trade.
Lessons learned from trade
Check the delta of the option if buying OTM (I didn't look at delta when placing the trade, but sure paid close attention to it afterwards).Be smart and only risk a small amount of cash on OTM option trading (I only put $20 plus the $5.60 commission on the line).Assess your risk tolerance on the trade and how company news events and market volatility will impact it (No company events, but the volatility in finanical markets helped this trade become profitable. I was anticipating some earnings and divy announcements, but I believe based on timing of last years Q4 announcements that the Q4 07 earnings and Q1 08 divy announcement will come after this option's expiration).Don't forget to give a shout-out to those in the Community that pointed these things out to you (Thanks NicoleWachs!).Now the next big question. What should I do with the money earned from the trade?
Read my trade note from when I opened this position.
P.S. If I had known that the stock was going to jump 1.11 today, I would have sold at .80 or .85
