If you read my book Inner Voice of Trading, you know I mishandled an option trade very early in my career in which there was a very big win. The experience left me with the concept that you have to have an executable plan for WHEN you make huge gains…and I say “when” because large moves will happen for you in your career. You have to be ready for them.
At that time, I still tripled my money. But since I could have done much better, I’ve always considered the handling of that trade to be a failure.
Since we’ve had a huge win in short period of time with the GOOG Vertical Spread I filmed earlier this week, I thought I’d follow up with another video of how to manage the trade.