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

Hey everyone, Kirk here again and welcome back to the daily call. Today, I’m going to answer a question from one of our users on Twitter who sent this in which I appreciate. Again, you can reach us through Facebook, Twitter, Instagram, however you want to get your question in. Just get it in, so we can get it added to the queue here. But the question was, “How do you monitor an option trade’s risk after making adjustments?” The idea was, “Okay. If I know that I have a 1% risk on entry, whether I'm doing it based on margin requirement or whether I’m doing it as a fixed defined risk spread, so the spread I know is $2 wide as an iron condor or $5 wide as an iron condor and that represents 1% of risk in my account. I know that on entry, but what happens after I start adjusting? How do I monitor that risk in the trade?” I think it’s actually pretty easy and I’ll talk about two concepts here in today's daily call because I want to touch on both of these. The first is that if you are trading defined risk strategies,