Explore Your Options by Jay Kaeppel
ADJUSTING POSITIONS USING OPTIONS
I hear traders refer to “adjusting” an option position. What does that mean, and is it worth knowing about?
Learning to adjust an option position is absolutely worth learning about and is one of the key advantages to trading options versus other vehicles such as stocks, exchange traded funds (ETFs), and commodity futures. To “adjust” an option position means buying or selling options to change the nature of an existing position ...