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Subject Expert
Just make sure you know the dynamics of your spread.
Think about the net price of the spread versus the max potential profit and ensure you’re getting a decent return and probability of profit.
If the long leg is near the money and the short leg is far out of the money your P&L can get wonky as the gamma on the short leg ramps up the delta.
A key ideas is to close the position once you get above 50% of max profit. At that point you stand to lose more than your remaining upside - so don’t be a pig.
Coach
Now too close is what I know. 10 point wide. The key is to collect 1/3 or more premium of the width to reduce risk if its a credit spread.
Got it. Will try that next.
Subject Expert
I assume you sold a 435P not a 435C because the latter is not a spread. Spreads just help you manage theta and delta on a position. They can be difficult to escape if they go against you.
Yes sorry. I sold a 435P
Is there an easy, digestible resource to learn the ins and outs of spreads
the trading fraternity on youtube