Lesson Overview

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 50-50 bets to begin with. In fact, we might adjust 1 or 2 all year out of 50+ trades to give you an idea of how little we tweak them.

There is one instance that we'll present in this video where an adjustment to this type of strategy might make sense if implied volatility rises during the process of the trade. And of course with high IV we'll have the choice to sell options and take in a credit to reduce risk.

More Discussion

Was This Helpful? Add Comments/Questions

  • I think the default with debit spreads should be to trade them sparingly because you really can’t adjust them well.

  • You could be if you did you’d end up increasing your risk by 2X or more.

eBook Download

The "Ultimate" Options Guide

Ultimate Options Strategy Guide

The step-by-step guide on how to set up each of the top 18+ options strategies we trade to generate monthly income. Read the whole strategy guide in less than 30 mins and have it forever to reference.

Download PDF

Join More Than 47,345 Members

Membership is always free & you can upgrade anytime to unlock our live trades.