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Saturday, February 16, 2013

Review of Feb Option Trade Adjustments

The Feb high probability income option trade cycle lasted about 7 weeks, with multiple adjustment fighting a up trending market. It's apparent that after each adjustment, the profitable zone became narrower and narrower as shown in the image below. The color codes were explained in a prior post.
In this period, I was expecting a bigger pullback which never occurred. At the time of this review, I'm thinking whether it makes sense to adjust to a more neutral Delta for each adjustment if the adjustment is following the current market trend.

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