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Hello trader, What do you do when your setup is still valid but your option expiration closes in? This is a common LottoX situation because I play short-dated options. And one that deserves an explanation. Because if the setup is still valid, then there is only one thing that should matter - time decay. You see, when I'm long options, time decay works against me. So if the setup takes too long to play out, I could end up losing on the trade. That's why I start by asking myself the following question -
Would I take this trade now if it was brand new?
If I answer no, chances are I suck it up, take a loss right then and there and move on. Which I know is extremely difficult for many of us. But if the answer is yes… I go through the following steps.
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Nathan Bear
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