Trade Adjustments/Hedges

What happens when a trade goes bad? Inevitably it will happen to you and how you react could be the difference between making or losing money. Do you roll out to the next month, move your strike prices, add/remove one side or do nothing at all?

In this popular module, we'll give you concrete examples of how you can hedge different options strategies to both reduce potential losses and give yourself and opportunity to profit if things turn around. Plus, we'll help you create an alert system to save time and make it more automatic.

Start Module

#1 Adjustment For Any Trade

We'll start our discussion in this module about trade adjustments first explaining the #1 adjustment that you can make to every trade that y...

When To Adjust A Trade?

So you have a stock that is moving against your option strategy but when do you actually pull the trigger and start to adjust the trade? Kn...

Single Options Trade vs. Overall Portfolio?

Often I'm asked about management for single options trade vs an overall portfolio. Which one should we care about? In today's video, I'll w...

Leveraging the "Analyze" Tab

With options trading it can sometimes be hard to visualize a trade's profit and loss diagram. Using the "Analyze" tab on thinkorswim has bee...

Call Spread Adjustments

Making adjustments on a credit call spread starts with adding the additional put side to the trade should the stock continue to rally higher...

Put Spread Adjustments

After entering on a put credit spread trade, if you have a stock that continues to fall against your position the first adjustment that you ...

Strangle Adjustments

Short strangles are very high probability trades with option far OTM it is important to make adjustments slowly with these types of strategi...

Iron Condor Adjustments

Iron condors should be adjusted similar to short strangles. Yet with the risk defined feature of these strategies you can be even more conse...

Straddle Adjustments

Because short straddles have the same ATM put and call strike it's much harder to adjust these positions. Entering these trades will usually...

Calendar Adjustments

Calendar spreads are low probability trades to begin with but that doesn't mean that we can't make adjustments that increase their likelihoo...

Debit Spread Adjustments

Because debit spreads are low probability strategies that we should use sparingly in our portfolio, there are a few reasons to adjust these ...

Butterfly Adjustments

Trading butterflies (and especially broken wing butterflies) give us a lot of flexibility in how we can exit to maximize our potential win r...

Using Stop Losses

I hate "stop-loss" orders - and you will too. Once and for all we'll completely put to rest our case as to why using stop-losses actually cr...

Delta Hedging

Because delta is a measure of the responsiveness for an option position to the underlying stock, traders have been carried away for years wi...

Rolling Positions

Rolling strategies from one month to the next is an effective way to increase trading timeline or duration, giving yourself more time to be ...

Pairs Hedging

You've likely heard of the concept of "Pairs Trading" but in this video tutorial I want to talk about "Pairs Hedging". I will often use simi...

Kirk Du Plessis

Course Instructor

Full-time options trader, real estate investor & Option Alpha founder. Former mergers and acquisitions investment banker for Deutsche Bank in New York, REIT Analyst for BB&T Capital Markets in Washington D.C., and Options Strategy Consultant for multiple hedge funds.

Course Objectives

What You'll Learn:

The most important aspect of trading and making adjustments to positions.
Determining when to adjust trades and what triggers you should use for alerts.
Managing the overall portfolio vs. single positions and how it effects adjustment decisions.
Multiple detailed and individual strategy adjustment walk through videos.
Using delta hedging and rolling positions near expiration to extend duration.

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