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My company went public and suddenly I have a pretty large sum of money. The stock is trading at 150 times my strike price. There are mixed feelings around the office of if we should sell and get the cash out or hold and wait for it to go higher and get more cash out. The issue is whenever you sell stock there is always a possibliity it will go up after your sell. My question is when do you know its the right time to sell stock options???

2006-11-29 04:23:26 · 4 answers · asked by the man 1 in Business & Finance Investing

4 answers

Ah, yes, the age old "but if I sell, the prices could go higher". Sure, they can, and they can also go down. If you sell and lock in your profits, prices could go higher. But if you hold and and prices go down, you could find your profits quickly dwindling. Can you see the future? Do you have a crystal ball?

There are two emotions in the market that will kill you every time - fear and greed. Fear keeps you out when you should be in and greed keeps you in longer than you should be.

I'm not telling you to sell and lock in profits, but what do you think you should do? In general, when prices take off that quickly, the down move is just a quick. There is what is called "regression to the mean". If you've locked in profit, be happy with it. Believe me, I've learned from experience. There were times when I should have sold to lock in my profits, but I got greedy and ended up losing a bunch when the prices turned. If greed is keeping you holding on, that should be telling you something. Could prices go higher? Sure. But there is an old saying "A bird in the hand is worth two in the bush".

If you believe you should absolutely hold for higher prices, then sell some of your options to lock in profits and let the others ride. If prices continue higher, then you made more, but if they reverse, you haven't lost as much.

2006-11-29 05:22:04 · answer #1 · answered by 4XTrader 5 · 0 0

first of all, advertising techniques has a distinctive hazard profile than outright paying for and advertising shares, partly because of the fact techniques are leveraged techniques. That being suggested, human beings sell techniques to soak up a top classification, it particularly is to soak up money. the money taken in compensates the broking, partly, for the possibility taken by advertising the alternative. There are conservative (i.e. safer) common the thank you to sell techniques, consisting of coated calls and money-secured places. noticeably volatile techniques of decision advertising comprise bare call advertising, the place the alternative broking exposes himself to theoretically limitless hazard.

2016-10-04 12:37:33 · answer #2 · answered by ? 4 · 0 0

if ur stock is listed then go thr technicals with aptistock freeware

dont sell directly if it is rising
follow daily weekly monthly stoploss and sell in small lots 10- 20- 30 %

invest profit in commodity

2006-11-29 16:37:04 · answer #3 · answered by dinu_pawar 5 · 0 0

I strongly suggest you to sell 50% of your shares now and use that money to buy a better public company.

One making more money and growing faster and older than yours.

If you can find 5 and invest 10% in each of them it would be even better.

2006-11-29 11:58:32 · answer #4 · answered by Anonymous · 0 1

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