I have to agree with spindr0. Nerves of steel means that you remain calm and concetrated, when you are in a position no matter what happens, as that's the only way you will be able to execute your plan.
MTE, SPIN, If that's what John meant, then I disagree with me also. I took 'nerves of steel' to be closing your eyes and hoping for a good outcome. I now see the ambiguity (from my perspective) in John's words - so I'll ask which did you mean? I assume I used the wrong interpretation. Mark
I must say that I am enjoying the conversation--even though I have been away from it for a few days. It's always good to have some sharp guys have a responsible debate without engaging in the mud slinging that so often ruins threads. I guess its time for a clarification on my meaning. It does appear a little ambiguous on second and third reading, almost like a politician's speech!!! I do mean that you need to be focused and concentrated, and still be able to think clearly and plan when things are not going your way. In fact, with these CTM style spreads, it's even more important to have a plan, and perhaps a couple of extra ideas that would be suitable alternatives BEFORE even initiating a position. I read with interest a comment Mark made on his blog to a fellow who held his IC until the short had been overrun and even theta decay was not in his favour anymore. He definitely did not have a successful plan ( probably froze under pressure) and needs to rethink how he approaches IC's entirely (as Mark pointed out in his response). I say amen to that! I also think that flexibility needs to be part of the strategy from the very beginning, as well. If you have a two month IC on and there is a 50 point move in the first few days, a person's response needs to be different than if things have been stable for a long while, say drifting down and then there is a 50 point move up with only two weeks remaining. Mark, your comment about holding on, refusing to respond to what the market is doing is absolutely true. That is the height of folly.