The 75% Rule:

First let me start off by saying many traders have asked me NINJA you have some serious balls or are very patient.  Or I need to be patient like you. I tell them im already out with profit I just leave one foot in the door just incase opportunity happens to represent itself again. This gives me the advantage to sell as close as I can to the top without the constant. FML I missed out on on a 10 bagger (1,000%).   


Here’s a trading strategy that allowed me to be more profitable in any market conditions.  This I developed over time going from trying the 50% rule (which made no sense until I saw I was barely locking in profit). Hopefully this helps Traders learn to take profits without having to question should they sell. Also can be applied to stock traders. Below I break it down for you .


The Break Down:

This is just an example. Amount shown is used for educational purposes. Apply it as you see fit.

$155 cash( amount using as example)…

  • Buy 3 contracts @.45 + commission =$151.41

(If stock goes up 100% )

Reduce 75% of position( or more than half of position in this car 2/3)

  • Sell 2 contracts @1.00(100%) =$195

(Now you’ve made back $151.41+profit locked  in which now you are FREE riding with 1 contract )

“If” remaining 25% or 1 contract goes higher let’s say stock price jumps or runs higher now your premium is up another 1-200% of top of that. This is your opportunity to maximize profit.

Now option price goes to lets say 2.20×3.97

  • “If” sell last 25% or 1 contract @2.97+ commission =$290

(75%)$195+(25%)$290-(initial investment)$151.41=Realized Profit(328.59)


*REMEMBER* Its not always about playing with big sizes. Keep your positions small and you will always be profitable.



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