verticals

MTE · Aug 17, 2009

Quote from pengw:

The issue with selling verticals is that profit ( if you are right on the direction ) become larger only during very last few days.

I disagree. You cannot generalize this statement for verticals.

For example, I closed out Aug put verticals with two weeks to expiration, booking 90% of the max profit.

mike007 · Aug 17, 2009

Quote from MTE:

I disagree. You cannot generalize this statement for verticals.

For example, I closed out Aug put verticals with two weeks to expiration, booking 90% of the max profit.

Was the an debt or credit vertical. Also if you do a credit vertical, do you go OTM a few strikes and hit up the ATM one if you are going for more of a direction?

MTE · Aug 17, 2009

Quote from mike007:

Was the an debt or credit vertical. Also if you do a credit vertical, do you go OTM a few strikes and hit up the ATM one if you are going for more of a direction?

They were OTM credit spreads. Not sure what you are asking about in the second question.