All options come with an expiration date; buying current month is the cheapest but fastest in time decay unless it is deep in-the-money options. The best choice is the next available expiration month options as you may need time to ride on a bearish reversal trade.

Even if there is a possibility that a stock can continues to slide, I will choose to close a big win and then buying another options closer to the stock current price. This way I can get more leverage at the same time taking some profits.

Sometimes whenever I have a winner and there were some profits, but time is running out as it approaches expiration, I simply roll my positions to the next available month options so as to buy more time to ride on the slide.

Another strategy that I used regularly is that I sell the next lower strike put to recover my initial capital maybe with some profit to convert into a Bear Put Spread, letting it run into expiration profiting some more from the time decay of the short position.

There are many ways that you can take profits and at the same time letting it running for more gains, rolling your positions, converting to a spread or selling part of your positions to recover your initial capital and letting the rest riding on the slide is another good option to consider. Whether strategy that you choose, you are on your way to a little bit smarter management and consistency.

“Investment planning is about structuring exposure to risk factors” - Gene Fama Jr.

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