What is "b/a slippage" and what broker gives you .70 cents? Mine is $1.25. I guess you probably trade more than I do .
Being delta neutral tells nothing about the risk in your position. Gamma (especially for credit spreads) and Vega are important, too. You seem to want to "sell premium" your way out of trouble, but it would simply add more risk despite flattening out the delta. When your credit spreads are being threatened, you need to manage the position at hand, and various ways have already been mentioned. A simple way to eyeball risk is by looking at a P/L or risk graph incorporating your current position. It sounds like you have a ThinkorSwim account, and they have very good analytics to show you what happens if the underlying moves against your position. You can also add simulated positions (adjustments) and see what kind of effect it would have on the graph. This gives you a much better representation of risk than simply being delta neutral.
B/A slippage is difference b/t bid and ask. IB is 70 cts per contract (25-50 cts if option less than 10 cts) with free assignment and exercise.
dreamliner, thanks for letting us know about the webinar. That was very informative. Have you seen the webinar on CBOE by Dan Sheridan??? That was about "Managing by the greeks". Perhaps that'll give you more insight on this topic.
I would add that flattening deltas by selling premium obligates you to own cheap wingstrikes before the underlying moves too far in one direction. If you've got those additional wingstrikes to the point of net long contracts, then when you add your short gamma to flatten, you don't find yourself adding risk to the point of potential ruin.
You guys have been doing this way longer than I have, and know what you are talking about. I'm just starting and don't understand a lot, but am learning quickly. I'm posting my positions (about 12 of them) in case you can offer any help. After today's market increase it has come back toward the center, but is still long delta of about 60. If I add any more negative delta by selling premium all I'm doing is reducing profit, without really adding much protection. I think I will just exit all trades if they reach my lower break even. Thank you for any and all suggestions, I'm learning a lot from you guys.