Jeff 6:41 am on Friday, April 29, 2016
Tags: SPXcampaign ( 2,265 )

SPX calls closed

#SPXcampaign Bought to close $SPX May 6th 2140/2165 call spreads for .20. Sold for 1.25 on Apr 18th.

Bob 6:50 am on Friday, April 29, 2016

Why close this trade? Do you really believe that the SPX will be above 2140 by next week? I’ve got a similar trade on (STO $SPX May 6, 2125/2150 BeCS) @3.25 db. I could probabably close it at .50 db, but why? Your thoughts please.
- Bobbie 6:54 am on Friday, April 29, 2016
  
  beware of greed
- Jeff 6:54 am on Friday, April 29, 2016
  
  I place close orders on all spreads for .20 as soon as I sell them. I will take the orders off sometimes when getting close to expiration.
- Jeff 6:58 am on Friday, April 29, 2016
  
  Also, we’ve been under an Upside warning and some call spreads have been stopped out. I feel that the warning is now off, but if SPX stabilizes we could see another move up. I think 2125 is safe for May 6th. I have a 2130 that I’m not going to close.
- Sam KS 7:10 am on Friday, April 29, 2016
  
  @Bob, If trading in IRA, you are holding $25 spread for 20 cents value, better take 80% profit and reinvest the capital with better returns unless position going to expire in a day or two.
  - Jeff 7:12 am on Friday, April 29, 2016
    
    Yes, margin is the element I didn’t mention. Currently have more call spreads than put spreads, so closing call spreads gives my buying power. If Bob has a 25-pt put spread expiring on May 6th, then closing the calls will NOT improve his margin position.

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