I sold opened a 6760/6765 call credit spread for $0.60 the moment price closed below the top level SD1 from VWAP (Orange Dotted Line). The Culmulative Delta indicator had also crossed below the 0 line meaning deltas were negative. If price goes below VWAP, I’ll look to close at $0.10 however, if price stays above VWAP I’ll look to close for 50%. I do believe that is the best way of doing things. I think that will be my way of taking profit from now on. If my contracts follow the trend using VWAP as an indicator, ill look to close at $0.10, however if it’s going against the trend then I’ll look to close at 50%. or a stoploss of 3 times the premium I got.
My thesis Was Correct. I was able to close these at $0.05 at 8:58 AM PST. Price dropped to 6641.