#supercharger this is the ITM vertical debit spreads.
The adjustment to ERX yesterday is already paying off. With only a 0.24 increase in ERX, the long has gained and the short has decreased in time value so overall profit $750 on 10 contracts. Technically it is now a #fuzzy and that appears to be the way to adjust one that goes against you quickly and easily. Of course it has already moved through my short strike but will be easy to roll next week and have 41 weeks left of selling now to reduce cost basis. In 8 weeks should be a risk free trade.
Of all my positions yesterday, this one was the least underwater even though it was the biggest down percentage wise.
I will keep experimenting with these through all market conditions and see what is the best way to adjust them, what is the ideal time to put them on, and which conditions are ideal for them.
Will keep you posted as to how they work out longer term but think this may be a very viable trading idea. I may even buy the course, only $39 to see what the official recommendations are but with the trading brain power we have here I think we can figure it out! I also don’t think the course goes into adjusting, I think they just take them off at a set loss point.