Gersh's Option trades Message Board

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Strategies & Market Trends : Gersh's Option trades

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To: KB who wrote (73)	9/28/2004 10:46:08 AM
From: Elmer Phud	Read Replies (1) of 652

KB can you be more specific with your exit strategy? My exit strategy is for the options to expire worthless<G>. The issue is what does one do if there is a significant move in the share price and our short positions become ITM as expiration approaches. Take short Puts for example. You could BTC and take the loss. My preference is to not accept assignment and not to lose money so rather than take a loss by BTC, I prefer to BTC and STO at a later month and if possible lower strike price, or simply said roll out and down. This is only a personal preference and not necessarilly the best move but it's what I have become comfortable with. I've also done some spreads where I BTO a Put at a lower price to hedge my short Put position to limit my loss potential due to a major event, 9/11 etc. Is this making sense?

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