Michael, I think the OP was asking for adjustments to basic spreads,
like vertical calendar, condor. I believe he is from the mindset that
a spread of a month's duration should not have have more that a couple
of modifications before it is closed.
On the other hand, your trading style starts with a spread and adds
and subtracts to it at a rate of perhaps once per trading day, with
the dual goal of increasing the size of the position and making it
risk free by expiration. There just might be a difference in the
answers.
On Wed, 30 Sep 2009 21:39:04 -0500, "mcatolico"
<mcatolico@mindsprin
>To me it's all about trading your position and seeing what the market
>offers. The rule is basically "no rules."
>
>
>
>My little pdf file on vertical adjustments (in files section) was intended
>to show a battery of potential defensive and opportunistic adjustment
>strategies based on what the underlying and of course the relative options
>are all doing. In a nutshell, if you can ever get a locked risk-free
>position that offers more upside potential, it never hurts to pounce on that
>opportunity.
>
>
>
>Conversely, if you can maintain a "funhouse mirror" mindset and you flipflop
>your position to see where someone holding the completely opposite trade
>would have the opportunity to enjoy a locked in winner, then that is usually
>the time you need to make a defensive adjustment.
>
>
>
>To me that's all there really is to understanding "market timing." Whatever
>position you have, there will come a time where an adjustment can be made
>that will turn it into a sure winner or where someone holding the opposite
>side of your trade would have that same type of opportunity. That's when you
>have to decide to act. Combine this with a solid grasp of position sizing
>and a dose of phenomenal option strategy fundamentals and the game is easily
>won.
>
>
>
>From: OptionClub@yahoogro
>Behalf Of David Steele
>Sent: Wednesday, September 30, 2009 4:03 PM
>To: Option club
>Subject: [TheOptionClub.
>
>
>
>
>
>
>
>
>
>Did anybody make a list of rules for adjustments for different spread
>trades. like when to adjust and why. like on moving average crosses,
>standard deviations, or between your breakeven and short, when a trendline
>breaks , or when your short goes in the money by a certain percentage, or
>adjusting when your greeks are showing certain percentages. who in the group
>have been doing adjustments base on these factors for calendar spreads, bull
>puts, bull calls, bear puts, bear calls, diagonals, and iron condors.
>
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>
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