Easy Methods for Adjusting and Defending a Trade
Update: 2025-09-08
Description
The segment explored three methods for adjusting troubled short put positions: adding a far out-of-money put wing with a short call spread to reduce buying power requirements, selling calls against the position to flatten delta exposure, and rolling out in-the-money puts to future months to maintain directional exposure while collecting additional credit.
These adjustment strategies help traders manage risk in volatile markets while potentially increasing net credit received and optimizing buying power usage.
These adjustment strategies help traders manage risk in volatile markets while potentially increasing net credit received and optimizing buying power usage.
Comments
In Channel