I used the insomnia indicator today.
If a position keeps me awake, even if I believe in it, I close out or neutralize half.
I did that with IOC, buying stock to cover half of my naked short calls that were part of the 60-70 strangle I sold a week or two ago.
The stock keeps banging its head against $75, but if the bulls finally blow through that resistance, there’s no telling how high it will go afterward.
Maybe this little sacrifice to the market gods will give the stock room to pull back toward my (bearish) target in the low 60’s. If that happens, I’ll buy $65 calls as long as I can own them for less than I got paid for the $70’s. Having done the same with the puts (buying $65’s for less than the $60’s paid me, I’ll be a happy camper with a guaranteed profit.
In the mean time, I won’t be worrying about something that happens outside trading hours that leaves me short a stock that flies past $100 a share.
I already did that with America Online during the dot-com mania, and sheltered far too many future dollars of capital gains by doing so.