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

Hey everyone, Kirk here again from optionalpha.com and welcome back to the daily call. On today's call, we're going to talk about how you setup trade adjustment alerts using Deltas. Really, this is a question that came from the community. Somebody asked me and they said, "Kirk, how do I setup these trade adjustment alerts inside of Thinkorswim or any broker platform that has this capability to use Deltas to basically let me know when I should adjust my trade?” Now, we've talked about this in previous shows on our main podcast, so you can just search the main podcast or the website about setting up adjustment triggers. But typically, what happens is that say you are trading a short strangle where you're selling a naked call, selling a naked put and initially, both strike prices are at the 15 Delta. Again, you sell the 15 Delta puts, sell the 15 Delta calls. Now, what you could do if you don't have the ability to monitor that trade all the time is setup what are called “trade adjustment alerts” and those are ba