I have been selling weekly strangles for few weeks now and it had been profitable so far, typically .2 delta on each leg. I am thinking what is the best way to manage it, my plan was to open each Monday and let it expire by Friday. However now I want to know what to do when profit of each leg is above 50%.
I think I should close it, the second part is what do I do after that? I have rolled down a 80% profit call on same DTE to collect more premium, it worked but I don’t know if that was the proper move. I have once let a 80%+ profit leg go to expire and it end up -250% (One of my biggest loss), think I should have closed it.
Or should I just close the trade early as on Thursday and just reopen and restart the cycle weekly from Thursday to next Thursday?
Don’t think there is one answer for this but just want to see other people’s opinions on managing weekly strangles.
Managing Weekly strangles. Taking profit? Let it expire? Or reopening trades?
byu/Sure_Leadership_6003 inoptions
Posted by Sure_Leadership_6003