Articles tagged with "adding an options leg"

Adjusting 101 When to and not to adjust an options position

Adjusting 101: When to and Not to Adjust an Options Position

Over the last few weeks, we have been delving into the adjustment portion of trade management. Whether an options trade is working for or against you, there are times where it’s prudent to adjust the position. Put simply, the risk/reward dynamics shift and when that occurs, it may be best to counter by adjusting the […]

How to add legs to an existing options position

Adjusting 101: How to Add Legs to an Existing Options Position

When referring to options trading, it’s easy to first think of stock trading. Especially given that most, if not all traders, begin by using stocks before some graduate to using options. When a trader buys stock — say 100 shares — what options do they have as the trade develops? In its simplest form, the […]