Help!!

T

torontoman

On Friday, I tried to leg into a deep OTM SPX credit spread. I often do this with no problem. I tried to get an April 1290 short put 1275 long put credit spread.

However on Friday, my broker had problems and it took forever to do a transcation.

Result: I got the 1275 long put for 4.30, but was unable to get a corresponding short position on time. The 1275 put is now trading at 2.65/3.50. The market is rising today. The 1290 put is trading at 3.40/4.20.

What should I do?

Torontoman
 
That's the risk you take when legging in/out. The way I see it is you got two choices:
(1) get out and cut your losses;
(2) hold on to your long put as a directional trade and put on a stop so that your risk doesn't exceed what you are willing to lose.
 
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