Selling_Options

[zivtheziv]

Well it depends on my mood and on the math :)

I usually likes to close the spreads when the rate is 0.2 or less so on each 10 units I lose around $100-$200 if it's from 0.1-0.2.
I can always stay till the close, it's a matter of risk and feel, you just feel the market and do what your gut tells you. sometimes you are right and sometimes you are wrong, but most time you will make money, just how much depends on the day you close the trade.

I can tell you example from yesterday on this one - I wanted to close both $AAPL and $YHOO and yahoo rate was at around 0.05 so I closed it and got around $100 hit from my total of 20 units - so intead of making $1,000 I made $900. if I were to wait another week I would either make another $100 or Yahoo would move 10% for some reason and I would lose $1,000. you never know but good odds I would make the whole $1,000.

Apple on the other hand I wanted to close my 105-100 put spreads and the stock was around $110 but the rates of 105 instead of being around 0.2 it was around 0.3-0.4 so I'll wait another week and let it expire worthless if it will be above 105 or I will close it one or two days before expiry if it is getting close to 105 level.

Hope this helps :)