tag:blogger.com,1999:blog-4049167043965640947.post8972238093904419553..comments2022-06-05T13:28:32.605-07:00Comments on Option Trading: 11/15 Daily SummaryGustavo's Tradeshttp://www.blogger.com/profile/10318651374855413975noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4049167043965640947.post-64153695075885066702010-11-16T19:10:47.617-08:002010-11-16T19:10:47.617-08:00Hey Manuel, I think that I might be cutting just a...Hey Manuel, I think that I might be cutting just a bit too late in the trading cycle, will do a review of all my trades and how many days till expiration I've entered in the past to see if I find any significant trend there. <br /><br />One thing I've noticed is that I'm pushing well past the 14 days for adjusting and managing the trade, not yet sure this is good or bad, of course I much rather exit in 3 or 5 days with my PL goal :)<br /><br />I think the debit spread helped me a lot in this last week, and when I looked at the overall trade I think there is room to do the first adjustment with a debit spread, and the following ones with a long call and put. The drawback is that they seem to use more of your capital..<br /><br />Let me know what your back test tells you! Cheers! GustavoGustavo's Tradeshttps://www.blogger.com/profile/10318651374855413975noreply@blogger.comtag:blogger.com,1999:blog-4049167043965640947.post-48111373546954915182010-11-16T00:03:39.509-08:002010-11-16T00:03:39.509-08:00Well if memory serves Dan Sheridan seemed to reall...Well if memory serves Dan Sheridan seemed to really stick to around 30 days out with his butterfly webinars and I think often did 35-25 as the window and really does not like to be in the last 14 days of any income trade. I opted to do my RUT at 35 days out and that has seemed to work really good for me in back testing and in my first three months of live trading butterflies. I like 35 days as I am usually out within the first 14 days and if I have to adjust by moving my butterfly I tend to exit in a 19ish day window. Finally given my experience level (i.e. lower than yours ;D ) I opt to just exit at 14 days left regardless if I am at a profit but not at target or at a loss but not stopped out unless I feel extremely confident in the market moving how I need it to.<br /><br />Going back to the debit spread. I agree I think the good old puts and calls still need to be taken into consideration because while a debit spread can help in some cases it probably will not do well like in an extreme drop or rise in the market or in smoothing the P&L graph line.<br /><br />I hope to get time and back test all my old butterfly back tests and use debit spreads instead of the call or put adjustments and see how they compare.Manuelnoreply@blogger.com