IN ADDITION NOTE THE BLOG from last month.
The KBH position fits this situation. Besides taking a profit, it frees up margin to put on maybe another trade or the JULY plays which will start hopefully this weekend
JUST A REMINDER TO NEW AND OLD SUBCRIBERS ALIKE.
DO YOU REMEMBER THIS BLOG? ( check back a few pages and see if it jogs your memory.
I recently received a question from a loyal subcriber that may have interest to a lot of you out there.
Dear Mr. Gail:
I have a question for you. After withdrawing some of my equity for
income tax, I am temporarily a little low on margin.
Some of your early spread recommendations have moved a long way in our
favor. Would it be acceptable to close out a couple of the May
positions early at , say a nickel net debit, so I can free up some
equity for either more late May or early June recommended positions?
ANSWER: This is absolutely an excellent idea. A profit is a profit. In addition, you can be sure there will be several times during the year, that 1 or 2 of these trades that we try to squeeze out that last nickel may come back to bite us. Our subcriber brings up an excellent point in regards to profits. Not only does he pocket a profit, but he frees up margin to put on more positions whether recommended plays or supplemental plays. ...etc