Home › Forums › Income Lab › Entering/Exiting an IC: the "right" price and emotions. › Reply To: Entering/Exiting an IC: the "right" price and emotions.
I’ll start by pointing this out,
you wanna enter so bad cause your capital is on the sideline and you don’t have other income trades on. So you start lowering your ask.
If you’re lowering your ask “just to be in it” that’s a bad start. Keep in mind, you can always move strikes around and see where prices are for similar trades. Same thing on the exit. If you’re trying to exit a trade and not getting a fill maybe the mid prices arent right. Now if you feel that you need to do something because the underlying is about to move, you can always add/remove NET delta to hedge that risk. I dont think it’s the best thing to do, because if it wasnt a part of your plan when you entered try not to adjust the plan mid flight. Giving up .10c to exit early is fine IMO, but forcing trades just to do it isnt. Now, if you’re at X% or your MAX ALLOWABLE LOSS and you HAVE TO exit but the fills arent there, you can look to flatten out your NET delta by using futures, futures options, OTM index options and so on until you exit your position and then close out whatever hedge you used to flatten your main position.