Tuesday, August 18, 2009

[TheOptionClub.com] Re: Looking for advice - IWM vert spread

 

David,

Congratulations! I am a big believer in reducing risk by limiting the time I am in a trade - especially a successful one. September is very far away, to me, and a lot can happen between now and then. If it was me, and I could get out today with the 25%, I would do it. Chances are you will not get the 25% if there is any move up.

Good Luck - Jeff

--- In OptionClub@yahoogroups.com, "doylegroup_2000" <doylegroup_2000@...> wrote:
>
> 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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