Contraction News Entry Profit Target %
What it does
Profit target for news-triggered contraction entries, expressed as a percentage of maximum credit. News-triggered entries use a lower profit target than standard contraction entries (35% vs 50%) because news-driven vol spikes tend to resolve faster and can reverse unexpectedly if follow-on news arrives. Taking profits earlier reduces the risk of a reversal.
When to change it
Raise toward 50% if you want to capture more premium on news entries and are comfortable with the faster-moving risk profile. Lower toward 20-25% to take profits very quickly on news plays.
Safe range
20% (very quick exits) to 50% (same as standard contraction). Default 35%.
Example
$0.60 credit news-triggered entry. At 35% profit target, close when worth $0.39. This fires earlier than a standard 50% target ($0.30), intentional, since news-driven positions can reverse faster.