what expiry out do you short? assume closish to expiry (weeks-2mths?) for max theta decay?
do you adjust/roll if price gets close to strike? or just close out?
I am shorting them max 45 days out and if it gets close to one of the strikes, I adjust the position. Last time I had to adjust oil 7 times in 45 days but with all these adjustments I doubled the original max profit...
Would you consider automating this adjustment process and incorporating it into your Spreading logic??
Hi OptionsLogic,
I mean where the trader mentions:
I adjust the position. Last time I had to adjust oil 7 times in 45 days but with all these adjustments I doubled the original max profit.
We have traders scripting similar strategies so the manual adjustment can be automated. I guess I would need to know more about what determines how he/she adjusts this?
Hi,
I would rather adjust them manually because I also look at the market conditions first. I do not like to automate it because it is a multiple dimensional game
take care,
Gery
I would rather adjust them manually because I also look at the market conditions first. I do not like to automate it because it is a multiple dimensional game
take care,
Gery
Hi,
I would rather adjust them manually because I also look at the market conditions first. I do not like to automate it because it is a multiple dimensional game
take care,
Gery
Cool, thanks Jerry. I'm at Actant should you wish to discuss any other ideas!
