Letting the RTT expire
- Thread starter John R
- Start date
Hi John, I can't answer for Dan so I'll just add my 2 cents here.
It is in my view safe enough to let a position expire i.e let all options that compose it "die" worthless if the market is at least 2SD, preferably 3SD from your nearest shorts. Of course your risk profile is personal and can differ from the mentor you are following so it is up to you to close your position earlier and avoid that risk particularly if there is virtually no Theta left in the trade. Alternatively, you can for instance place a conditional order triggered on a VIX level or a 2SD move of the underlying.
It is in my view safe enough to let a position expire i.e let all options that compose it "die" worthless if the market is at least 2SD, preferably 3SD from your nearest shorts. Of course your risk profile is personal and can differ from the mentor you are following so it is up to you to close your position earlier and avoid that risk particularly if there is virtually no Theta left in the trade. Alternatively, you can for instance place a conditional order triggered on a VIX level or a 2SD move of the underlying.
A little info about options that are expiring in the money. TOS charges you $15 per spread to expire it even if it's a one lot. Close those out and pay the commissions if that makes sense. Also if you are having a hard time getting filled on an expensive spread then maybe it's best to just eat the $15 per spread. Look at the plus and minus of the ITM options.