my current trade, still 7 weeks until expiration, already realized 90 % of profit, already reduced risk by 80 %
Data for 4 tranches: at the beginning: profit/risk 1360/2640, SPAN Margin at about 1.400 No fat tail risk.
now: profit/risk 1470/530 Margin at nearly zero. Bought back the sold vertical ($8) for $ 0.8
Risk of 530 starts now below 2300, more than 500 points (20%) lower ! No fat tail risk.
I let the trade expire without paying commissions at the end.
Data for 4 tranches: at the beginning: profit/risk 1360/2640, SPAN Margin at about 1.400 No fat tail risk.
now: profit/risk 1470/530 Margin at nearly zero. Bought back the sold vertical ($8) for $ 0.8
Risk of 530 starts now below 2300, more than 500 points (20%) lower ! No fat tail risk.
I let the trade expire without paying commissions at the end.