Hi David, as always, Michael's suggestion makes rock-solid sense and based on the prices that I see for different verticals in TOS, you should be able to convert them into risk-free flys or condor.
The only thing I would like to add is that if you decide to go ahead with these adjustments, you need to be comfortable with the "modified" market outlook. When you sold the call verticals, you had bearish price expectations from the market but converting them to OTM (58) fly or condor will require you to be bullish about the market, which is exactly opposite of where you started. If you are comfortable with this, you should go ahead with Mike's suggestion.
Hope this makes sense.
Cheers Viky
http://options101.
--- In OptionClub@yahoogro
>
> 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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