David Prince Explains How to Box an Options Trade After-Hours

So you took call options into an earnings report after hours and the stock is flying.

The problem: you can't take profits until the market opens the next day because options can't be traded after hours.

If the stock drops by the open, you miss out on that big gain.

But there is a strategy you can use to lock in your win – boxing your options.

To box calls after hours at a specific price, you short stock against your call options.

This effectively locks in a profit at a specific price.

Because if the stock drops by the open, you'll make a profit on the short position.

And when the market opens you sell your calls and cover your short at the same time to take your pre-determined profit.

David Prince broke down the strategy recently for a member of the Inner Circle VTF® with a trade on Rubrik (RBRK), take a listen:

David explains:

Apply to work with David inside the Inner Circle VTF® here.