Rolling is a critical piece of the adjustment protocol that we apply to our positions. By moving trades out to future cycles, it allows us to keep our primary focus on the duration of our positions, rather than the direction of the market. Furthermore, when we roll, we like to stay consistent with collecting credits each time we do roll a trade to a later cycle.
But sometimes it pays to sacrifice a bit of our credit, in exchange for recentering our strikes on a position that gets away from us. Today, we see how to do exactly that with our IBM earnings trade.
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