i am sorry you guys lost me here. What you mean? "keep the shorts open? Open at a nickel? " and the response to that? didnt get it.
The options would be worth a nickel and you have a choice to buy them back to close the position. This frees up margin for the next trade and protects you from a nasty after-hour gap against you. But since this would be into the last week you could let them expire worthless. This is something to think about.
atticus, what are you saying exactly i dont understand. The Jan 70 calls are 0.45, 75 calls are 0.15. Below is my trade: - Short MERAM (Jan 65 Call) - Short MERMJ (Jan 50 Put) --------- FF, yes it's something that has to be decided when the time comes. As a general rule, i usually cover when the shorts are at 20% to lock in profit and free margin for next trade, unless it's really the last week of expiration and not much news/volatility, then i let it expire and save some commission as well.
No, it means that if someone was short it then there's no point keeping it open as the risk doesn't justify the reward of 15 cents.
I referenced the Dec $15.00 OTM options for a quick price guide for 1 week left and they are about $0.05. Obviously my "Some exit plans" list isn't complete but is a starting point. I had a December DIA Iron Condor and used the second exit plan: "If it's an Iron Condor you would have to consider liquidating the entire leg that is ATM and leave the OTM leg open". My latest update: DIA Iron Condor