Buy Back or Sell Early – Here’s Why Most Traders Should
Jan 08, 2026You Don’t Have to Hold Options Until Expiration
Why Smart Traders Close Early?
One of the most common mistakes options traders make is believing this:
“I have to hold my option until expiration.”
That’s not true — and in many cases, it’s exactly where unnecessary risk shows up.
Most professional options traders don’t wait until expiration.
They manage trades before risk spikes.
Why Waiting Can Be Risky
Expiration might feel like the finish line, but the final days of a trade often bring:
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Sudden gamma risk
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Higher assignment risk
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Bigger losses from small price moves
The problem?
The extra reward for waiting is usually small — while the extra risk is very real.
Closing Early Is a Risk Decision, Not a Fear Decision
Buying back an option or closing a trade early isn’t “giving up.”
It’s how traders:
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Lock in profits
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Reduce downside surprises
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Stay consistent over time
The goal is not to be perfect at expiration.
The goal is to manage risk and stay in the game.
Watch the Video to See When It Makes Sense
In the video above, I explain:
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Why professionals close options early
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How buying back options reduces risk
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When locking in profits is the smarter move
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How this applies to income strategies and spreads
If you’re trading options for consistent income, this is a foundational concept you must understand.
👉 Watch the video above before your next trade.