ICE: Smart Move or Need to grow a set?

Discussion in 'Options' started by cjone, Apr 20, 2007.

  1. cjone


    Was wonder everyone's thoughts...

    Was short ICE 135/140 Apr call vertical [expiring today]. Covered the 135 call when ICE was hovering right at the strike (134.90 to be exact). Only sold the spread ~ a week ago so my b/e was only 135.50. Ended up as a scratch, just covered commissions.

    I was thinking of being Johnny Toughnuts and just holding and hoping that it will close below 135, but i figured that would be dumb and why risk a couple grand instead of being even. Of course, it is now trading lower and I would be safe.

    Basically, question is should I have waited it out or was I smart to cover? I ask more for the future when this happens how to play this next time.