Gersh's Option trades Message Board

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Strategies & Market Trends : Gersh's Option trades

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To: the options strategist who wrote (87)	10/7/2004 12:41:34 PM
From: KB	Read Replies (1) of 652

Not sure who you directed the question to, but here's my .02 - I do not look specifically at time value and delta. Here are my guidelines as they exist today: 1) Normally I'm not trying to pick a direction, so I prefer an iron condor or double diagonal type position on indexes (tend to be less susceptible than individual stocks to major moves on news). 2) To further minimize the possibility of a news-driven spike, I will not sell an IC more than about 6 weeks out, a double diagonal about 12 weeks out. 3) Since I normally open the entire position all at once (I can't watch the market, so legging in is not possible for me), the greeks tend to negate each other since I'm buying & selling in the same transaction. 4) I try to find positions that are consistent with moving averages, support/resistance, and my desire to earn 10%+ on risked capital. 5) Still trying to find an exit strategy I can live with. Some I've tried are exiting the entire position when a short strike is reached, exiting only the side where the short strike is reached, exiting entire position when cost to close is 2x the original credit. hth, KB

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