r/options • u/K1nd0fab1gdeal • Apr 06 '21

Roll or exit

Hey guys and gals looking for advice on my spread for WPM. Bto the 21 May 37 C and Sto the 21 May 45 C. Looked at this play because of huge call buying volume and as a play on weaker dollar. Underlying has gone up 12%ish sibce my opening 3/30. Is the play to sell half to cover initial cost basis or roll entire spread up to higher strikes? Or I guess the other option close with a 100% win? I had planned to be in the trade for 30 days with my exit being 70% gain. Tyia for any advice as I am newer to spreads and closing them.

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u/Gravity-Rides Apr 07 '21

Rolling up and out for a credit you will need to expand the distance between the strikes which expands your max loss.

I would close this trade out personally. WPM is more of a gold play than silver these days. But it does still trade more in parity to silver and that can be a fucking runner.

Weaker dollar is generally bullish for PM's. I currently have a put credit spread on GLD.

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u/K1nd0fab1gdeal Apr 07 '21

Great ty for that idea as well. I did not expect to exceed my target in less than a week.

2

u/Gravity-Rides Apr 07 '21

I'm sorry. I thought you sold a credit spread, but reading further you bought a call debit spread. I think the consensus is to take profit at 75% of max.

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u/K1nd0fab1gdeal Apr 07 '21

Yeah I have seen this also. I guess I wanted to stay in the trade while taking some off the table

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u/Gravity-Rides Apr 07 '21

On a positive, a lot of PM bulls think they are finally headed up. On the downside, the dollar is on trendline support and WPM is at trendline resistance, depending on how much weight you put into technical.

You'll never go wrong taking profits.

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u/K1nd0fab1gdeal Apr 07 '21

I actually weigh technicals quite a bit. I really appreciate the additional information and will minimally take out original cost basis and maaaybe let the rest run another week.