The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome come back to the daily call. Today, we are going to be answering a question that came in from one of our users which was “When do you cry uncle and give up on adjusting an options trade?” I think this is a fascinating topic because I like the idea of just crying uncle and giving in. I think actually, a lot of people give in too early. I’ll mention that when you make an adjustment to a trade or when a trade goes wrong, there's probably a lot of things that you can do either early on in the cycle or even late as you get towards expiration to reduce risk to some degree. You can roll strikes, you can roll the entire position, you can add corresponding legs if you're doing a one-sided trade, you can turn it into a neutral trade. There’s actually probably a lot of things that you can do to a trade that's going bad or going wrong early on. But when do you give up? I think this is really the topic of what this person was getting to. After you’ve done all of those things, assu