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Being a big fan of profit taking, I couldn't resist the opportunity to take a little money off the table on Friday because it not only has freed up some cash to enjoy a little bit of the good life, but I'm also not convinced that another dip down to the DOW 8500 level isn't a possibility.

If the market does take another slide before once again marching forward towards DOW 10000, then cash on hand is going to become a necessity for those looking to jump in on any bargains that may open up.

I want to emphasize that I did not completely sell out of any position; I just sold enough to satisfy my thirst for profit and to free up some additional cash.

First, I couldn't resist the opportunity to sell some shares of SIRI for 76 cents. Most of these shares I had purchased for about ten cents and I thought that Friday, after a significant run for the stock, was as good a time as any to realize some profits. However, I still have about two thirds of my position left because I believe SIRI will reach - and then surpass - a dollar sometime in the short-to-mid-term future.

I then decided to sell most of my Citi (NYSE:C) September $5 call options. Those have also traded up pretty significantly over the past few weeks and I couldn't resist the opportunity to sell - especially since they will only be valid for another month. I retained my full inventory of Citi long calls since, as I've mentioned before, I think Citigroup and its stock price will ultimately recover along with the rest of the market.

Again, I like the idea of having cash on hand in case the market takes another dip before recovering and SIRI and C have helped me boost the reserves, for the time being.

Whatever the reason is, however, realizing some profit is a must in this game, because a profit is not a profit until it's realized.

Disclosure: VFC is long SIRI and long C.

Source: Nothing Wrong with Taking a Little Profit