Bay Area, CA
Posts: 136 since Jun 2010
Thanks Given: 5
Thanks Received: 64
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Back when we had only monthly options it was common practice to say to close down the trade if you were able to capture 80% of the max profit. Now that we have weekly options I don't know what I should be doing. Right now I wait until almost expiration to close them but only if there is a problem with it.
I was thinking of maybe putting in sell orders to close the spread early but just wanted to hear what others opinions were on the matter. If I sell a spread for $2.25, at what would a good number be to buy it back at? 0.05? 0.01?
-Allistah
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