This is a trade I outlined in a series of video tutorials.
June Put Vertical Spread 50/48
||1. Exit if I can lock in 80% of my
initial credit (i.e. $.10)
2. Exit if cost to close >= twice initial credit (i.e. $1.00)
I outlined my basic motivation for this trade in the first video shown here.
This part of of the video tutorial covers position sizing, entering
the trade, and planning exits.
I could have exited this trade for $.15 back on 6/2, which is very close the my target exit price, but I held on because the trend was still intact. No reason to give up some of my edge for no reason. I have an exit plan so I'll stick with it. Then a few days later, I almost regretted my decision to stay in. However, the secondary trend line held as seen here.
This video provides a more detailed update and rationale for staying
I closed the trade on market open for $.10. Total profit on the trade: $.40 x 2 contracts or $80. In calculating the ROI, I had $1.50 risk in the trade with a $.40 profit so the final ROI is 26%. This was a good trade overal. It almost couldn't have gone more pefectly... not all of them do that.
Here's my final video wrapping the trade up.