Ok stock traders/investors what would you do ???

Question

I purchased 100 Shares of XYZ Co. at $8.00/share, the current market price is $12.00 each. The share's one month $10.00 Put trades for $1.00, should I sell the shares at the current market price or buy the Put or just wait for the share price to appreciate more ?

Answer 1

I need much more information to answer. Inexpensive shares tend to be very volitale. I'd really need to understand why the stock has risen and in what time frame + have a good look at the charts (weekly, daily and hourly).

But you seem to be looking for a simple answer... so here goes;

Use a trailing stop at around the low of the past week or month (which ever feels best by you).

Here's a better answer (to late);
You should never be in a stock without an exit plan.

Answer 2

Definitely need more information. In particular, the trailing mean, variance, and probably the third moment of the stock price's distribution. Or, better yet, just assume the put option and the stock are fairly priced, and only buy the put if you need it to limit your risk AFTER buying the stock.

Answer 3

That answer cannot be answered without knowing which stock it is. If you keep just playing with numbers you're going to get burned when the market goes down.