If you entered ratio put spread last week or earlier...

三心三意
楼主 (文学城)

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

u
usstock123
请问三心,VST什么价位可买?127?115?
三心三意
I've been adding from here to its 200D MA
u
usstock123
多谢
a
aloevera
Are you going to close the put spread for APP as well today?

465/495 and 460/490?

三心三意
That is what I did, I closed 480-465(1:1) for 14 profit

Now, leave 465 naked put there.

I have not touched my 2nd ratio put spread yet

 

a
aloevera
credit about 24.5 for both
a
aloevera
You do not want to wait till later when time value goes down

more to close it? Is it because you are afraid of the stock price back up very quickly?

a
aloevera
Are you going to close the 420/440 put spread today?
三心三意
May wait a bit, now only 13 profit out of 20 spread

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. 

a
aloevera
Got it. Thanks!
三心三意
huh? your profit will never be higher than spread
三心三意
14 out of 15 is more than u can ask for
a
aloevera
我看错了。以为你是14 out of 20. 14/15 is a good deal.
a
aloevera
看错了。我以为你是14 out of 20. Never mind. 14/15 is high enough.