One of the biggest mistakes traders make with spreads is holding them too long — especially when they’re already deep in the profit zone.
The instinct is to squeeze every last penny out of the trade, but in reality, that opens the door to unnecessary risk.
I use a simple rule to avoid that.
If I’m already sitting comfortably inside the max gain zone, and the additional upside is only 10% to 15% more, I ask: Can I realistically find another setup that offers that same return but with a wider margin of safety?
If the answer is no, I stay in. But if the market’s giving me something with better probability or structure, I roll the trade.
This isn’t about chasing higher returns — it’s about maximizing efficiency. Why risk losing 20% to make another 10%? Especially when that 10% comes with more exposure and less room to be wrong.
It’s also why I don’t automatically cut trades just because I get an exit signal. Sometimes I’ll hold to expiration if the trade’s sitting right in the middle of the profit zone — even if I’ve already made 20%.
That extra week might push the gain to 33%, and the risk to get there is minimal.
The goal is to stack high-probability trades, not force every spread to hit its max value. Smart exits beat greedy ones every time.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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They made everyone believe “rigged” options bets were the only way to turn tiny stock moves into big gains…
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