I replied with the details but I do not see it. How long does it take for a post to show? If it does not show I will do it again. I saved the math data.
--- In ConservativeOptionS
>
> 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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