What i mean is just a reflection of my style. It isnt better per se, it's just the way i trade. When i go net long premium i prefer holding the position for a brief period of time(5-7 days) unless its a no risk position like the credit fly i just got into. When i am net short premium i have a tendency to wait it out almost till the end. It's just what works for me.
Coach, cost was $1.80. Current value is bouncing around a lot... it's about 2.20-2.40, so profit on 100x is $4k to $6k... so it's not really moved much. Goal is to hold to expiration...
Wow, 100 spreads at $1.80 = $18,000 cost. Must have baggy jeans to support those balls . My advice for s#its and giggles..... try and grab the 1305/1310 bull call spread for about $2.00 and lock the box for $3.80 and a guaranteed profit of $1.20 or $12,000 for a return of 66% Yawn... Nice job..
These last two days have taken about 10 years off of my life. I am NEVER going to trade NDX options again!
Why lock in a -expectancy on the box instead of offset? You can't buy the box at a better price than simply offseting the bear vertical.
A few pages back rallymode was asking me what I use as a max risk. This post reminds me of one of my real guidelines. If a one or two day move (positive or negative) makes my stomach jump/ache, then I am past my true risk tollerance, and probably getting overconfident or greedy. It's a nice guideline because it is determined by the individual.
On a different note... It seems that you might have traded the wrong strategy for that index. Many people get married to a certain strategy and will trade it regardless of the issue. I find the issue/setup and then determine the appropriate strategy.
Considering we are already at the bottom of the channel and the size of the position i would take profits at this point. You are nowhere near a credit FLY so, I think you should offset the spread here. You can always open another position if you want to be bearish but with a better entry. Just my opinion.
Sometimes the OTM spreads are easier to fill than the ITM spreads so the 1305/1310 OTM bull call spread might be easier to fill at $2.00 for a $1.20 profit locked in over trying to get out of the $1.80 spread at $3.00. Of course you take the higher profit but we could rally back into next week to 1310 so offering the choice of selling or locking in now as a consideration..