I don't follow OIH but after a quick review, if it were me I would probably go rallymode's way but to each his own. Right now I'm waiting for SPX to get down to 1230 or below to put on a CTM bull put spread. Thanks for helping to expand my trading universe a bit .
Well, the two trades are slightly different in outlook. I will probably hold my position longer than cache so i wanted to give myself a lil more cushion. Cache, on the other hand will probably close on the bounce. Given todays pop, my guess is that he will be closing after a few more points. I employ the same approach with individual issues. With ETFs and indices i like to give myself a lil more cushion, while taking slightly more risk. His ATM spread will give him a better return on risk as the ATM spread will have a larger decrease of its value. ATM spreads are richer in delta's, hence they are a lil more directional. It all depends on your underlying prediction.
I think you are right, get out of harms way today with the pop. Right now the mids are: 120/125 = 1.40, profit of .20 125/130 = 1.60, profit of .60
I wonder what quotes you are looking at?? I can offset the 120/125 for .90 right now, for a profit of .70. Cache can close his 125/130 for 1.40 for a profit of .80.
Try again: View options chains as Verticals. Information layouts choose: Mark and Net Change 120/125 Mark: .95, Net Change: -.65 125/130 Mark: 1.50, Net Change: -.50 Based on that the 120/125 spread made more money today. MoMoney.
I swear what I posted is what my screen said. I came home from work and pulled it up, now it matches what you posted. Kind of strange.
I am out at $.50 on this late day bounce. Cache, where do i send your commission? What price are you holding for? i see resistance ahead at 140.