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Here’s something that might go against everything you’ve heard about managing options trades: I typically hold till expiration with spreads.
While most traders rush to close profitable positions early, I’ve developed a systematic approach that prioritizes cost efficiency over quick profit-taking. The foundation of my strategy comes down to one simple principle — I use puts because I don’t want to pay closing fees, and I don’t want to have to pay exercising fees.
This isn’t about being cheap — it’s about maximizing a mathematical edge over time.
This also means understanding risk at a deeper level. Traders often ask how many contracts are needed to hit a certain profit target, but if you’re asking that question without first knowing the risk math, you’re already off balance.
You need to know your risk before you get into the trade, not after. That mindset is core to everything I teach and every position I take.
The Set-and-Forget Philosophy
My approach centers around bull put credit spreads, where if the underlying closes above the strike, the position simply disappears from my account without any additional fees.
A recent gold setup required adjusting strikes up to $394 after a meaningful move, but the principle stayed the same. I do not set targets. I let the trade work and aim for full expiration.
When spreads expire out of the money (OTM), they vanish — no closing costs, no exercise fees, no extra decisions. After that first reference, I simply call them OTM.
This isn’t limited to gold either. I test this approach across multiple assets to strengthen the strategy. For example, when reviewing performance across markets, one of the cleanest datasets came from the Nasdaq 100 (QQQ), which produced some of the best results overall.
That kind of cross-market testing reinforces that the method isn’t tied to a single chart or commodity.
And even within this set-and-forget style, there’s room for real-time judgment. Market conditions shift, and sometimes you’re watching the screen thinking, “Let’s see what the next move tells us.”
That moment-to-moment awareness helps guide adjustments without abandoning the broader framework.
When to Break the Rules
There is exactly one scenario where I manually intervene: when the underlying finishes between the two strikes, creating assignment risk. If you’re holding a spread with strikes like $384 and $385 and the price closes at 384.50, you can be assigned.
In those cases, if the market is threatening your strikes heading into expiration day, it’s often better to close the position manually and avoid assignment altogether.
This methodology isn’t for everyone and it shouldn’t be. But for traders who appreciate cost efficiency, statistical advantage and simplicity, holding credit spreads to expiration continues to be a compelling, durable approach.
Graham Lindman
Graham Lindman 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.Â
