Don’t Break Up Vertical Spreads

With Vertical Spreads, it might be tempting to break the strategy apart, close the “winning” side, and leave on the “losing” side, in the hopes that it will recover. But as we see today with our DIA and V <a href="https://ontt.tv/Z97i7" target="_blank">Vertical Spreads</a> doing this will completely change the spirit and intent of the strategy. It doesn’t matter if you close the short leg first or the long leg first - breaking up the Vertical Spread will leave you potentially exposed to more risk than you were <a href="https://ontt.tv/QGUhG" target="_blank">on trade entry</a>.