Hi Robert,
I must say I've never done a roll to repair a credit spread gone bad. Do you have a specific example or two? I usually write them so far out of the money that I don't get into that position (but my reward is low too). Thanks!
Michael
www.safe-options-
--- In ConservativeOptionS
>
> In interpret Bull Put Spreads to be Credit Spreads. I buy the further OTM
> Put and sell a closer OTM or ITM Put for a net credit.
>
> I do this quite a bit and track them religiously.
>
> I have learned to do them in an account where I have significant margin
> capability so that I can roll them if they go bad. I will roll the short
> position for another credit and then sell the long put - which has
> appreciated for more cash. If I think theresulting NP exposure is too much
> I will enter another long OTM put and restablish the spread.
>
> Bob
>
> On Fri, Feb 26, 2010 at 8:50 PM, optionsmike <
> michael@...> wrote:
>
> >
> >
> > Hello to all,
> > Does anyone in the Group do credit spreads? If so, how do you limit your
> > risk and close your trade? I like writing them and generally close them out
> > early if I can get halfway back to zero from where I established the
> > position.
> >
> > Michael
> > www.safe-options-
> >
> >
> >
>
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