Q: I have a 3 leg box trade on SRS. Since the market has turned do you take the bearish leg off and let the call side run or leave the trade intact.
I bought Dece so I can let it go for a while.
A: I keep it on until the option I sold as part of the vertical spread is near worthless then I buy it back.
I also like to convert the 3 legs into a ‘box’
to lock in my profits when the market is about to turn against me and I have a good profit. But that requires some skill in determining short-term market direction. My MarketDNA software can help with that.