Tomorrow is close to expiration and during the last hours SPX fell back down. Graph: http://i51.tinypic.com/2rogcg8.png Current Positions: http://i56.tinypic.com/2e17z4j.png I feel like it may be close to my short put strike of $1285. What would people recommend me to do if I am risk averse and want to minimize my potential losses and gains? The next Puts out are at 1275 - $1.10 1280 - $1.85 Then for Calls 1295 - $1.80 1300 - $0.75 Should I close the current put positions and sell the next one lower and then sell the next lower call credit spread after closing the higher ones?
OUCH!! Hopefully you didn't get too beat up. I had this problem in the past. If I have only one day to exp I would wait for my shorts to be ATM and cover. With only 1 day left it is not worth moving the spread further OTM since most likely you won't be able to move very far from where they're or If the position is large I would set a max dollar loss instead.