Call Credit Spread help

Discussion in 'Options' started by hocuspocus, Apr 16, 2007.

  1. Suppose I have a call credit spread on the NDX. Here's my hypothetical spread, it expires in a few days:

    (1) NDX APR 1825 Call
    1 NDX APR 1850 Call

    Being a novice, let's say that I neglected to pay attention to NDX's movement. It is now at 1833.96 and my hypothetical spread isn't profitable.

    Not knowing what the future movement of NDX will be, what would a more experienced option trader suggest be a good adjustment in this type of situation?

    Thanks in advance for your input.

    Karl Bruno
  2. jj90


    Close the position ASAP.
  3. MTE


    Depending on the amount you are willing to lose you could just keep it and hope that the market moves down in the next 3 days. Alternatively, as jj noted, you may wanna just close it out and move on.