I wanted to post several graphs but i’ll just stick to the current example to ask a question about “good habits”.
Seeing how the spx is trading premarket, we can assume 2 things
1) there is gonna be the chance to close the put side at .35
2) the short delta of the call side is gonna be around 18-20 (assuming we won’t push further. Which is an IF that i’m gonna treat as true for the sake of the question).
We have half size on the call side, it was a roll down, and the goal was to roll and add higher on a push (like this one). Now, you could argue “I can wait another day to roll up and add cause the delta is not 20 yet, and chances are market will push again.
If that is the case, will it be worth closing the put spread today? Is the nickel you would made on waiting another day important for the roll of the call side higher?
To put the question in a general way: if you have one side that needs management (the call side in this case), do you manage the safe side (the put in this case) at the same time or can you be free to close and roll the safe side a bit before the threatened side when you basically don’t have too much juice left to milk there?
I hope the question was clear enough. It’s not really a problem for this trade to be honest, cause i’m assuming i’m gonna do both today, but it’s tied to the best practice to manage a winning trade.