Normally when we roll to defend a position, we roll the untested side. This allows us to collect more credit, widen our break-even points, and reduce overall risk in the position. But sometimes in special circumstances, it can be worth considering paying a debit to completely recenter the position. This option only makes sense if you’re still left with a sizable net credit on the trade, as we see with the Straddle to Strangle roll we are considering with our PTON position.
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