http://andyswan.com/blog/2008/06/09/why-i-will-not-use-stopsand-you-shouldnt-either/ Just another WordPress weblog Wed, 08 Sep 2010 14:31:51 -0400 http://wordpress.org/?v=2.8 hourly 1 http://andyswan.com/blog/2008/06/09/why-i-will-not-use-stopsand-you-shouldnt-either/comment-page-1/#comment-746 Andy Swan » Exiting option spreads early….not for me Wed, 08 Jul 2009 14:51:27 +0000 http://andyswan.com/blog/?p=12#comment-746 [...] One of the reasons I trade spreads is to take that sort of thinking/reacting out of the equation.  Basically, the odds are extremely good (probably around 60-75%) that you’ll get a “scare”, where the stock moves towards or hits your short strike….but only a 30-38% chance of it holding below that level all the way through expiration, as explained in a section of this post on why I will not use stops: [...] [...] One of the reasons I trade spreads is to take that sort of thinking/reacting out of the equation.  Basically, the odds are extremely good (probably around 60-75%) that you’ll get a “scare”, where the stock moves towards or hits your short strike….but only a 30-38% chance of it holding below that level all the way through expiration, as explained in a section of this post on why I will not use stops: [...]

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