Keep it tight - Market Analysis for Aug 10th, 2017

One of the reasons I play super tight vertical spreads exclusively is because I want to minimize the total vega of the position. This is important in particular when you are playing vertical put spreads in Index options because implied volatility tends to explode in a move down. If your short leg is far away from the long leg in the vertical, the short vega from it can cause tremendous under-performance on the trade.

So keep those vertical spreads tight in particular to the downside, as a rule of thumb use the minimum width possible for them.