I have to agree with Yip...look at it this way...if you buy back for 40cents on a 5$ spread that effectively is giving back to the market an 8%return in less than a week. Will you actually make 8% in a week on any other trade? While it does free up margin...if you wait until at least monday I'll bet you can close for a .05 or .10 making 30 to 35 cents for your patience.
Vertical Spreads for Aggressive Growth
- Thread starter Cache Landing
- Start date
You are probably right, need to be more patient. Just trying to take risk off the table when I saw the drop down to .20. I'm sitting on a good profit and don't want a rally next week to take it away. Can't complain when I am showing a 1.20+ profit (on paper anyway since I can't get a fill
) on a credit spread in under 2 weeks.with the s & p hardly moving today...baring or barring a large move tomorrow theta will be eating big time into our spreads
...hang in there!
hey...put in .20 GTC...you never know!
...hang in there!hey...put in .20 GTC...you never know!
Its sooooo hard on a day like today to sit on your hands
thats why I'm chatting
we should be on vacation with Cache
thats why I'm chatting we should be on vacation with CacheToday's Action
BTC 3 ATI AUG 65/70 c @ 0.05
Year to Date P/L
Account Value: $15,073.50
YTD Gross P/L: 5,690.00
YTD Commiss: 616.50
YTD Net P/L: 5,073.50
YTD % P/L: 50.7%
BTC 3 ATI AUG 65/70 c @ 0.05
Year to Date P/L
Account Value: $15,073.50
YTD Gross P/L: 5,690.00
YTD Commiss: 616.50
YTD Net P/L: 5,073.50
YTD % P/L: 50.7%
Quote from RichardRimes:
we should be on vacation with Cache
I don't know about that. Got sick while on vacation. Food poisoning I think. Maybe I just ingested some bad lake water. In any case, I've had better vacations.
I'll be leaving to Sanata Barbara on sunday, but it's business this time. I don't know how much access I'll have to the internet, so I might be monitoring my positions periodically.
Quote from RichardRimes:
Its sooooo hard on a day like today to sit on your hands
I think I owe you and Yip a drink for telling me to be patient
. The market dropped again on Friday making my profit on the 1295/1300 that much better 
. I'm still holding on and am looking for more CTM opportunities.Quote from ryank:
I think I owe you and Yip a drink for telling me to be patient
Unline FOTM spreads, when you go CTM you really dont have to close if you dont want to. It isnt all that prudent at all. In fact, most of my SPX CTM spreads are expiration probability bets to begin with unless i get most of the profit right away. As such, i sometimes dont bother closing as they go even ITM.
Good luck.
I completely agree. It seems that many novice options traders like to adjust/offset a CTM credit spread as soon as a short is threatened. This might be effective for OTM/FOTM spreads, but not for CTM/ATM spreads. In fact it often leads one to adjust/offset at the exact worst time.
When trading CTM/ATM, don't worry too much about the short going ITM. Look for the best time to adjust.