Question about European Options (Index options). I am playing spreads on the weeklys on a demo account. My question is whether is to buy to close on the sell side on the last day of expiration where the spread is high or allow the contract to expire then opt for a cash settlement. Any clarification would be appreciated.
To quote(paraphrase) Fisher Black- when you play PIN risk hang on to your b***s. They are cash settled of course, but manipulated to b*ggery at expiry......allegedly. I never run trades to expiry and just accept that it is 50% risk,after the hard work of finding a trade that may have made good £££.