To: valueminded who wrote (55386 ) 4/9/1999 1:19:00 PM From: Knighty Tin Read Replies (1) | Respond to
Chris, First, at least half of my puts, and sometimes more than half, also expire worthless. That's why I don't take small profits unless expiration day approaches. The winners have to first cover the losers, and then crank out the returns. They do, but you have to be willing to watch a couple of doubles disappear. I think the roll down is the best cure for this problem. If you get a double, roll down, pocket the profit, and stay in the game. I prefer more than a double, a quadruple is my favorite roll target, but I definitely roll doubles and triples if expiration day is near or if I see a trading pattern that has taken hold, as with CDWC. When the pattern breaks, all the remaining roll downs could become highly profitable.
