When you are long one of these spreads, you are faced with decisions all day long (and even all night long with $SPX)… when to exit? With a small profit? Or wait for a bigger one.
Being short is easier.. if stop is hit, GET OUT.
Last night at 9:30pm Pacific I could have taken profits on call spread by selling at 2.50. I instead put in an order for 4.00, thinking we’d edge higher over night. Instead, we dropped. Then after the open, I put in a new sell order for 1.50… the opening spike got me to 1.35, so no fill. Now we have collapsed, and likely profit will be zero. Only hope is whatever volatility just spiked us down will be seen as a buying opportunity like yesterday’s morning was.
Still, successful week with 4 wins, 1 likely breakeven (today) for total profit of 4.85.
Options Bistro 