Checklist

Pre-exit options checklist

Use this before choosing close, roll, hold, partial profit, reduce risk, or expiration.

1. Write the original thesis in one sentence.
2. Mark whether the thesis is still valid, weaker, broken, or unknown.
3. Calculate current P/L and percent of maximum profit captured.
4. Compare remaining profit potential with remaining risk.
5. Check days to expiration, time decay, IV condition, and upcoming catalysts.
6. Review bid/ask spread, open interest, and whether all legs can be closed.
7. Check assignment, exercise, dividend, after-hours, and broker instruction risk.
8. If rolling, write the new trade as if it were a brand-new entry.
9. Ask whether the roll improves the thesis or only avoids realizing a loss.
10. Document the exact condition that would change the decision.

Download the checklist

Primary reading: FINRA options overview · FINRA assignment guide · OIC options basics · OIC exercising options · OCC options disclosure document · SEC Investor Bulletin on options