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Recommend trade width

Discussion in 'Options' started by gtboy, Aug 11, 2015.

  1. gtboy

    gtboy New Member

    Hi
    I have been trading spx spreads for about a year now and so i am basically learning as i go. Usually i trade 1000 and 500 spreads. i trade less than 20 deltas. depends on premium.
    maybe this is a stupid question but does any knows a formula to use to determine what spread width to use. I just go with my feelings and depends on the premium receive.
    I also close trades once I reach about 50% of total profit. I never had to consider rescuing a trade - so far lol. I have about 10 Gs trading account now.
    I beat my self up when i realised if i have left my trade to expire i could have save so much money, i keep making the same mistakes taking profits too early.

    Also I am trying to make rules as i go. stop using my emotions and have a plan. I would like if you guys and gals could share some of your trading rules and plans. I do realised every1 is different but at least I could use your ideas to build mine.

    thanks a lot for reading and hope to get some replys.

    tc :)
     
  2. GreenZone

    GreenZone Well-Known Member

    Hi gtboy

    Perhaps you could start things off yourself in talking about which rules you are using now.
    From what you've said, I assume you are selling OTM put credit spreads?
    Let us know what you're currently doing, and then we can see if we can provide some other hints/tips which you can then test out.
     

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