The Early Exit Rules And How To Follow Them

There is only three exit rules: Close When Strike Is Broken, an early exit rule and an expiration day exit rule. 

Close When Strike Is Broken: you exit the credit spreads trade when the stock breaks your short strike price. This is typically something that you close towards the market close when you can confirm that the short strike price will close in the money.

Early Exit Rule: you should close your credit spread trade out early if you can close the trade for .05 or less AND there is more than 5 days left until expiration.

Expiration Day Rule: you should close the position on expiration day if the credit spreads appears to expire in the money or at the money by the expiration day close. If it will clearly expire out of the money, then let the trade expire.

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