How to decide targets for options trading

This month i traded for Cipla stock option. When i reached at level of 568 i actually gained doubled and i decided to wait, so stokc rose to 574 and again it fluctuated to level of 563-568 for 3-4 days so i decided to square off long option, but after selling my option after 4 days stock made new high and it rose to 620 in jst 3 days and i lost my lot of profit potential, so which strategy should now i follow to not to lose ahed profit potetial as i thought that after making new 52 week high it will fall definitely ? Even if i had sold my option does there was any way to enter again in another option to book profit as out of money option would reduce profit gain ?

There is no way you can know whether a stock will go up or down.It is just gambling.So you can not decide targets in gambling.But for some days there can be a bull market for a particular stock, there is no way you can know when the bull rally will stop.So it is difficult to make any strategy for the question you have asked.Also do not buy options as out of money options loose its value even if the stock price remains same. Trade in CIPLA stock futures instead.  

you could have sold OTM option when the stock made a 52 week high, thereby making it a debit spread (except that there is no debit to you !).

If the stock goes up, debit spread would make money. If the stock stays there, OTM premium would lose more than the option your purchased.

all the best.

Ideally you can’t predict the exact price of the stock. But you can estimate the possible price using price action technical analysis. For example, u should stay with stock as long as trend is there. When trend is in question, get ready to trigger sell button, once you confirm the trend reversal get out of the trade. This may give you the winning edge. Happy Trading

I agree with him; adding to it you should also check how much time to expiry is left and what is the spread now worth.Let’s say you created a spread of 40 points and both of your strikes are ITM now then you should square off your position if it is giving you Rs.30payoff/profit or more(75% of the spread)with more than 7-10 days of expiry remaining.