You had me at this line as anything that comes after is meaning less to me.
Actually, really depends how many strikes out the spread is, many stocks/ETFs, if you go out 8 strikes options are a nickel which is almost being naked and reason many even have this cause limited margin held. But you are concentrating on profits whereas I concentrate on risk, very few of what I do expire worthless and I am just looking to get out at percentage. I think too many are looking at profits first whereas keeping losing percentages down I think should come first.
I'm always looking to get solid spreads on - involving multiple structures - for as cheap as possible. For me, it's the opposite of selling the nickels 8 SD's out. If I have any options that are short and trading for a nickel - I get rid of them. In fact I'll usually close them out well before the nickel, but only to juice the spread in the case of a bigger move on expiry day. There is nothing left to gain at those levels.
It's awesome to be able to occasionally jack one into the parking lot. But if you are batting .150 you aren't going to play in the big leagues. It's about getting on base...singles and doubles.
