Bobbie 6:39 am on Tuesday, April 19, 2016
Tags: SPXcampaign ( 2,265 )

question for Jeff or anyone…

question for Jeff or anyone – I have a May5 2125/2150 call. It is being tested. With that much time left on option, do you get out now or wait for down day? Thanks, Jeff

Jeff 6:43 am on Tuesday, April 19, 2016

This is the question the has baffled humanity for centuries.
Okay, maybe just baffled me for a year.
But lately, I have been using 20 points OTM as my stop signal. I have the same spread… if we hit 2105, I will then wait for a pullback to get out and then roll it later.
You can choose your own level on these. Waiting for a pullback is always best, but can mean sitting uncomfortably through possible surges. #SPXcampaign
- Bobbie 6:49 am on Tuesday, April 19, 2016
  
  many thanks, Jeff. I will follow your rules.
elitethink 8:14 am on Friday, April 22, 2016

agreed, delta/gamma are simply too high with < 20 points. That, on top of gap risk, warrants the exit imo. Prob of touch analysis needs to be on that level too, great job guys.

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