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, “Should you always have a GTC profit-taking order working in your account?” If you don't know what a GTC profit-taking order is, GTC stands for good till canceled and it’s basically an order type that you can put into the market in your brokerage account that basically stays in place every single day going forward in the future until the options either expire or until the contract is executed at your price. For example, if you sold a straddle for $500, you might have a GTC profit-taking order to buy back that straddle at say $300. Whenever the straddle price goes down to $300, it would automatically execute that order and take profits out of the position. My thought process on – Should you always have one? is that I don't think you should always have a GTC order working. I think they work for different accounts and different scenarios in your life and how you trade and how muc