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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: Ron Lambert who wrote (824)8/16/1999 7:01:00 PM
From: KFE  Read Replies (2) of 2317
 
Ron,

I would be interested in discussing when it is you feel the market will continue a trend against your position and thereby close only the short leg of a credit spread.

Since I always cover the short when at or approaching the strike price and time left until expiration is only days or hours the long option doesn't usually have much value. My decision to keep the long side is based on the momentum of the market or underlying at the time. Some of the things I use to determine this are the Tick and the Trin.

Regards,

Ken
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