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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (1510)	6/22/2000 6:43:00 PM
From: KFE	Respond to of 2317

Bridge Player, If the market should move strongly up prior to expiration, would your strategy be to attempt to leg out so as to still make a profit? Or would you simply close both legs (at a loss) at the same time? At what price level of OEX prior July expiration would you become concerned? On OEX OTM credit spreads I will always start my exit when the short option becomes ITM. Only if I have a good feel for the direction of the market will I leg out and this usually means covering the short options otherwise I will just exit the entire spread. If I close both sides together it usually means that I will limit my loss to what my potential gain could have been. I have learned to have strict discipline with this strategy. how do you handle repair strategies if the market runs against your position? See above. My take on repair strategies is that they usually mean that you can't admit that you made a mistake. Maybe you don't know the underlying as well as you think you do and should move on to another trade. Regards, Ken