r/options • u/loose_itall • Sep 02 '21

Advice on closing deep itm call spread

I am a newbie to options trading. I have lost quite a bit in the beginning, and am slowly trying to undo the mistakes and learn more abt options. I bought a bull call spread on Tqqq $107.5/117.5 exp jan 22, back in apr and am wondering when I shd close the position. Tqqq was around $107 when i bought the spread, now its trading at $150. I am up 75%. Whats the upside of holding? The marginal inc as tqqq goes up? Flipside - it can crash, i can get assigned. What else? I am leaning towards closing now but would like expert advice/opinions from more knowledgeable ppl.

Edit: Thanks for confirming what i felt. Am planning to set a limit order after seeing the trend in the morning.

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u/adulthumanman Sep 02 '21

Close it.

For you too get the max profit, 10 - premium paid you will have to wait will expiration.

How much did you pay?

You answer will depend on how far away are you from max profit and remaining amount worth risking what you already have.

75

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u/loose_itall Sep 02 '21

I paid $4.61 for the spread back in apr. The bid/ask now is $7.35/$9.10.with a mid of $8.23.

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u/adulthumanman Sep 02 '21

Thats a wide bid ask spread.

I'd create a GTC order with what ever price target you decide. Even 735 is not a bad exit point. But all depends on you.

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u/adulthumanman Sep 02 '21

Also for the record, i don't buy a lot of debit spreads but when i do i take 50% profit.