Hold path

When holding an option may still make sense

Holding can be reasonable when the original thesis is still valid, the exit rule has not been reached, remaining reward is meaningful, and the position is still liquid enough to manage.

Conditions that support holding

• The thesis is intact and specific.
• The remaining profit potential is worth the remaining risk.
• Time decay and catalyst risk are intentional, not ignored.
• Assignment consequences are acceptable or low.
• The planned loss limit has not been breached.

Holding because "it might come back" is not a plan. Holding because the trade still passes the written plan can be.

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