Thursday, August 20, 2009

[TheOptionClub.com] Re: Adjusting Spreads

 

Jeff

I have come across three sources of excellent information regarding managing/adjusting positions ...

1. Michael Catalico ... who has posted pearls of wisdom in this forum for some time.
2. Charles Cottle .... who can be found http://www.riskdoctor.com/ ..who has written a book called "Options Trading: The Hidden Reallity" and is his guide to position adjustment and hedging ... along with dedicated webinars and strategy intensives.
3. Paul Forchionne .... who's book 'Trading Options Visually' discusses adjustments to various positions

I ahve drawn valuable insoghts from all 3 in my own own trading.

Cheers
James

--- In OptionClub@yahoogroups.com, "jeff_williamsen" <jeff@...> wrote:
>
> I have read many books on trading options. One subject that is rarely covered, if ever, is adjusting a trade. Help me to understand how I can adjust this trade, that may be going bad this week.
>
> GS Bull Put Spread
> STO AUG 160 @ 1.86
> BTO AUG 155 @ .84
> Credit 1.02
>
> Currently if I were to close
> BTC AUG 160 @ 3.85
> STC AUG 155 @ 1.67
> Debit 2.18
>
> I figure my options are to roll down or reverse position. I would like some thoughts from this group, as I am a bit of a beginner on these types of spreads.
>
> - Jeff
>

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