The ULTIMATE Guide to Options Trade Adjustments - Options Adjustments

[@desisher5292]

Truly great video - lost of very useful and practical information, and one of the very few videos on the net which actually shows how to successfully adjust losing positions. Thanks Option Alpha!

[@OptionAlpha]

Awesome great to hear thanks!

[@RamaMoorthyD]

Terrific explanation. It really boosts our confidence. Thank you very much Krick!.

[@mater531]

Kirk, I had listened to this video lesson before, but for some reason, it never clicked in my brain. This evening, the light finally went on! Thanks for sharing this info.

[@OptionAlpha]

Thanks Tony - sometimes listening a couple times helps!

[@nydimka23]

Very helpful video on how to manage trades going against you and plus shows that patience and following rules is very critical component of this business. Thanks Kirk

[@RamaMoorthyD]

Hi Krik, Several times I listed to this video & you made me clear on the concept of increasing the break even
One question to you, why is that you're not even moving the tested side slightly to get some additional break even?
If you move a little, it can give some more cushion on the break even right? Correct me if I am wrong. Thank you

[@robinyip6185]

Awesomely explanation for many case studies!

[@genegoodman532]

great moves ,very helpful packed with strategy

[@OptionAlpha]

+Gene Goodman Glad it helped Gene!

[@seifekidane9848]

this is a great video. thanks for making this video. By far the best. I have learned from every video you have made. Almost watched all of them like crazy... thanks Kirk. Seife

[@edboc]

Good video, When do you typically roll the untested side? When the strike is touched/breached or when one side reaches a certain delta? And what delta do you roll to?
Thanks

[@OptionAlpha]

+Edwin Chung We cover that in our free advanced options course here: optionalpha.com/members/tracks/advanced-course

[@robertcurtis1191]

how do your commision costs figure into this? seems that by trading just 1 or 2 contracts and rolling multiple times you would eat up a good deal of your profits with commissions. what were your profits net of costs?

[@OptionAlpha]

+Robert Curtis We only pay $1.25 per contract so it's never really an issue that leads us NOT to adjusting.

[@robertcurtis1191]

+Option Alpha Wow! 1.25? I have been with TOS pretty much from the beginning and pay 4.65 a leg plus .65 cents a contract. Looks like I have a phone call to make.

[@OptionAlpha]

+Robert Curtis Glad I could help save you some money! See this podcast we did on the subject before your call: optionalpha.com/show-020-how-i-negotiated-a-17-reduction-in-my-trading-commissions-17421.html

[@bedypus]

Amazing video. I have a question, maybe because I'm from Brazil and maybe options are a bit different here. Also we don't have firms offering these kinds of softwares to facilitate options trading.
All the option you deal with are european options? Because otherwise, I would imagine that if someone bought a call option at $34 dollars and the stock moves up to $36 dollars the person will call his option before expiration date and buy the stock from you at $34 and make a profit. Am I wrong?

[@OptionAlpha]

+bedypus No they are mostly american-style options and typically assignment doesn't happen until the week of expiration in most cases.

[@rodbrown42]

so you have to be making these moves like 2 to 3 weeks from expiration for best results?

[@OptionAlpha]

+rodbrown42 Generally yes but not always, sometimes we'll adjust the week before expiration.

[@jarg1971]

Why are you only trading 1 contract? If you factor commissions, you are always losing money. I'm assuming you are only doing it for instructional purposes and would trade more contracts when doing actual trades.

[@OptionAlpha]

+Jorge R Not true. Our commission rate is $1.25 per contracts so even after commissions we make money overall trading. We trade small position sizes so we can handle holding positions when they go against us without being margin called.

[@jarg1971]

+Option Alpha - what broker do you use?

[@OptionAlpha]

+Jorge R We use thinkorswim (optionalpha.com/tos)