SPX March 2 Credit spread closed.
Further to my post this morning where I recommended that this week's SPX credit spread be closed today, I exited the position for a debit of $.70 a short time ago. SPX was trading at 1863.78 when I closed the spread. The short put at 1840 was still 23 points away, but I felt it best to close the position rather than take the overnight risk with only two days left in the cycle. This resulted in a gain of $15 based on one contract. I was also concerned about a late-day movement against the trade, so decided not to wait until the end of the day.
More aggressive traders may choose to keep the position open until later in the day or overnight, but I will accept the small gain I was able to secure and move on to the next trade cycle. I consider any gain in this cycle a "win."
The next trade entry will either be Thursday or Friday, depending on market conditions.
As always, stay keen on your risk management and trade carefully,