Today could be a good timing to close the 1:1 put spread to lock in the spread profit, but leave the naked put untouched.
If stock rally in next 2 weeks, you get this spread profit for free. If stock continue to drop, you will buy in that stock anyway as planned.
If you dont lock in 1:1 spread profit, once stock rally, you will lose this profit
465/495 and 460/490?
Now, leave 465 naked put there.
I have not touched my 2nd ratio put spread yet
more to close it? Is it because you are afraid of the stock price back up very quickly?
I have accumualted lots of credit on these APP hedge, so, may get a bit greedy here and wait. if it is close to 17-18, i will close.
But 13 out of 20 is already not bad (close to 70% gain), so, if you want to close 1:1, totally make sense.
Today could be a good timing to close the 1:1 put spread to lock in the spread profit, but leave the naked put untouched.
If stock rally in next 2 weeks, you get this spread profit for free. If stock continue to drop, you will buy in that stock anyway as planned.
If you dont lock in 1:1 spread profit, once stock rally, you will lose this profit
465/495 and 460/490?
Now, leave 465 naked put there.
I have not touched my 2nd ratio put spread yet
more to close it? Is it because you are afraid of the stock price back up very quickly?
I have accumualted lots of credit on these APP hedge, so, may get a bit greedy here and wait. if it is close to 17-18, i will close.
But 13 out of 20 is already not bad (close to 70% gain), so, if you want to close 1:1, totally make sense.