When I'm trading short term options, there isn't much time for hope. Thus, I try to take out my risk as soon as possible, and also lock-in gains as long as I still have them.
I might leave some chance for extra profit by letting it run, but I will decisively take profits if I can. (or as Ken says: "Ruthless Risk Management")
The reason for that, is that I want to improve my wining trades statistics for these short term trades, and have new bullets for the next trades. I will not allow a nice profit to become a loss, just because I fall in love with the position.
International Flavors & Fragrances Inc ("IFF") was trading down in the first days of the year, but on Jan 5th it made a Psar flip on the 65min chart with green candles all day. It seemed like the second leg down was over and that a SSC is in play.
At that point as I noticed also the higher low it made on the daily chart and decided to buy 30 Call15 for 10 days:
As IFF reached 119.5 , without hesitation I sold 1000 shares against 10 calls, and lock-in the options cost (BE). When your risk is out your trading psychology is much easier to handle.
By doing that, I could profit now also from the downside, if IFF will change direction and will go under 115 (since the calls will be worthless and I will still be short 1000 shares).
Then on the next day as it reached 124, I sold another 1000 shares and also bought 10 put125.
Now I locked-in 3.6R and still have chance to profit more if in the next 4 days until expiration IFF will go over 125 (the puts will be worthless so I will be long 10 calls) or under 115 (where the calls will be worthless and I will have 2000 shares short + 10 puts).
To conclude, IFF still has 4 more days to move, but I decisively, took profit because they can just as easily disappear. I still left some chance for more profits if the market will like to give me more. And if not I'm happy too. I traded it professionally according to my trade frame and rules.