I personally always look to lock in gains and have risk free trades. Not
sure if you'd be able execute these today but I would convert each vertical
into a butterfly if the debit were less than the original credits. For
instance, on the 58/60 I would buy the +56/-58 or even the +57/-59
(reversing your later short vertical). see how these would net into either
the +56/-2 58/+60 fly or +57/-58/-59/
-----Original Message-----
From: OptionClub@yahoogro
Behalf Of doylegroup_2000
Sent: Monday, August 17, 2009 5:57 PM
To: OptionClub@yahoogro
Subject: [TheOptionClub.
Last Thur AM I sold 3 Sep58/60 call spread @0.90 per. Later that day the
underlying dropped so I added 2 Sep57/59 spreads @0.75 per. I got a total
credit of $420 - $12.50 comish = $407.50, therefore I have $592.50 @ risk. I
now after todays mkt drop have a 25% profit and have captured about 40% of
the total potential profit for the trade. I see three choices with 32 days
until expiration 1) let it ride 2) close out a portion of the trade or 3)
close the trade with 25% profit in 5 days.
What would you do? Thanks in advance - David
PS: I know..I wish I had more of these types of problems.
------------
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