You've made a great earnings trade but what happens if the company gaps much higher or lower than the expected move that you planned for?
When this eventually happens (and it well many times over the course of your career) you need to have a game plan in place to adjust the trade and reduce risk. In this video we walk through LIVE how it happened to us with a NFLX trade.
This generally starts with rolling up the side of the trade that the market moved away from and taking in more of a credit to increase your break-even prices. I'll also discuss possible scenarios where rolling the trade to the next monthly contract is a viable strategy.