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

Hey everyone, Kirk here again at Option Alpha and welcome back to the daily call. On today’s call, we’re going to talk about portfolio rebalancing thresholds and when you need to adjust your overall portfolio. Previously, we’ve talked about in other shows why balance and Beta weighting your portfolio is really important. Now, the question is when you start to get unbalanced or when you start to tilt one direction too far or the other, when do you adjust? I’ll say it comes in two stages. I’ll take the least aggressive stage first and that is that you should be monitoring your balance at least once a week. By doing that, if you just do it once a week which literally takes you 30 minutes to do, if that, then you have a really good idea of when you’re starting to get unbalanced. It should not be a surprise. Every week, you should be monitoring this and one week, you might notice the markets made a big move higher or lower and now, because we took off position X, Y, Z or we’re past expiration or whatever it is, no