DEBIT TRADES require underlying to move in your direction, in your case you will profit from MID crossing below your break even price.
Why did you buy Oct ?
You need to be prepared with you exits first, managing risk and keeping your losses small is critical to being profitable.
So what do you do if it moves against you?
Do you sell take a loss or convert ?
Explore what happends and determine which exit is most appealing to your risk profile, then set a predetermined profit as your primary exit.
Calculate the results based on possible movement.
Ride it regardless of the direction !
From: paul7313 <paul7313@yahoo.
To: OptionClub@yahoogro
Sent: Thursday, May 28, 2009 7:56:21 PM
Subject: [TheOptionClub.
sold 560 put on the index "mid"
buy 570 put on index "mid"
october expiration
now what? if the stock goes above 570. goes below 560. stays between
I have done credit spreads before, never debit spreads.
Want to sell for profit asap.
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