The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to answer the question, “How to protect long call option profits?” There’s three ways to technically do this. I’ll go through them here on today’s podcast. Again, we generally don’t suggest that you trade long call options. It’s not really a trade that generates high expected overall returns. But if you find yourself in a position where you did for some reason feel a little bit lucky and you wanted to trade a long call option, you have some profits in place, how do you basically protect those positions? The first thing you could do is sell the position. This is pretty simple, actually and probably my most suggested option to do is just get rid of the position and take your money off the table. If the market gives you a favorable move and it happened in a short amount of time to where time decay is not ripping the value out of these long call options, then your best choice might be to just simply sell