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As I stated in an earlier post I nearly got myself in trouble. The only thing I can think was I was too close DTE. Is there a time limit at the end where it's too late to exit?
Can you help answer these questions from other members on NexusFi?
even if I am not in the desired profit zone I try to get out at least 2 weeks before expiry.
If anything bad happens in that period, there is little room to adjust then.
Sometimes, when it seems not ver risky, I also let it expire worthless. The daily price decay of the option is fun to watch when it is in my favour. It is still no prudent and rather a guilt pleasure...
My direction to my broker was "I'll take the value of an option I sold as a loss to hold my position. More than that I want an exit placed call me. Buy back if it's a 50% profit including your fee. This was direction to my broker. I never directed any thing else.
With this case i was near and in the money but still at profit.
With one day for DTE
Thank you! Only having time to look onweekends or when it rains. So am not making any trades other than paper soon. However I am going to exit current positions.
What deltas are you choosing for the option to sell?
I usually have very low deltas, around 3 for naked puts or calls, and 4 - 5 per side for strangles.
Low deltas leave me ample time to react even with violent moves in the underlying.
I am also working full time during the day, and then check in the evening if I have to do something. My advantage though is that im in Europe: in my evening the markets are still open.
Once a trade is open, I find trade (risk) managment does not take much time an effort. you need to have some rules for yourselves in place though, when to exit a trade.
For the trade selection I look at the weekly data, that can be done on the weekend.
I also take ideas from this and the other options thread, namely from Myrrdin and Ron.
Then I open the trade sometimes during the week.
