Yesterday I closed my Intel put position early, locking in a solid profit while freeing up capital for the next wheel trade. I exited early because I’m starting to implement a 70% max-profit exit strategy.
Across many options trading resources, I kept seeing the importance of trade management. A common rule is to close trades at 50–75% of max profit rather than waiting for expiration. The benefits include:
- Avoiding gamma risk close to expiration
- Freeing up capital so it can be redeployed into the next wheel trade sooner
INTC is the first trade using this new exit strategy, and I captured $87 out of the original $125 credit.
The calculation is simple: Exit Price = Credit × 0.3
Using INTC as an example:
- Credit received: $125 × 0.3 = $37.50 (rounded to $38)
- Therefore, the buy-to-close price target was $38
Total profit calculation:
- Credit received: $125
- Buyback cost: $38
- Fees: $1.12
Net Profit: $85.76
