FRO gapped down substantially at the open today, so I am going to change the entry price of this option trade to 5.20 which was today's open price. That will more accurately define the risk/reward parameters for anyone in this trade. Obviously it got off to a great start. Stop loss should be set no looser than at 2.60 right now.
I am not in this trade, so right now for trade management sake, I would suggest using a limit order to sell at 150% gain which is 3 times the 50% risk initially. I think that with this big initial move, 100% gain is too conservative. However, if you are willing to immediately set your stop loss to 33% risk, then 100% gain is OK.
The GLD put option I recommended is basically up 100% right now. I would definitely move the stop loss to breakeven or 25% gain. For multiple contracts, it would probably be wise to exit half of them and let the rest ride till expiration or set a 200% sell limit order to exit the second half of the contracts.
Pete
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