Articles tagged with "adjusting"

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 […]

Adjusting 101: How to Adjust an Options Leg

Options trading is not a very cut-and-dry scenario. It requires constant monitoring, risk/reward calculating and at times, adjusting. To adjust an options position, sometimes we need to add a leg to our position. In other scenarios it means we need to “roll” the position. Finally, there are times where we simply need to adjust an […]

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 […]