Options Trading Insight | Adjusting Your Trades When the Market Rolls

Options Trading Insight | Adjusting Your Trades When the Market Rolls
Options Trader John Napolitano talks about what to do if you wanted to roll a credit spread into selling a naked option. John also gets into his own personal rule that he works by and trust us, you do not want to miss his rule that he shared.
Trade Options with John Napolitano
stocktradingpro.com/trading-options
Rolling Credit Spreads: The speaker, John Napolitano, explains how to roll a credit spread into selling a naked option. He describes a scenario where a trader has a bear call spread (a type of credit spread) and decides to roll it into another month to avoid a market-moving event. This is a common strategy used by traders to manage their risk.
Adjusting Trades: John discusses his personal rule of allowing himself to make one adjustment to his trades. He warns against tweaking trades too much, as it can lead to confusion and a lack of clear strategy. He refers to this as having an "octopus" of trades, with too many different elements to manage effectively.
Becoming More Bullish: If a trade exceeds expectations, such as a stock breaking out to new highs, John suggests buying another call option. This creates a ratio back spread, where the trader has one call option that can increase in value without limit, but still has some protection on the downside with the sold call option.
Risk Management: Throughout the video, John emphasizes the importance of managing risk in options trading. He advises traders to be aware of expiration dates and to understand which options are in the money and out of the money in their portfolio.
John Napolitano: Options Trader
Support: [e-mail]
Disclaimer:
toptradingpros.com/disclaimer/