From Theory To Practice - February 25, 2021 - How to Manage Small Winners at 21 DTE

With our undefined-risk strategies, we know that we want to manage and adjust those positions at 21 DTE. Doing this allows us to control our deltas and mitigate gamma risk. But sometimes at 21 DTE, we’re sitting on a small winner that hasn’t quite reached our profit target. In these situations, it can be helpful to look at IVR to help guide our decision making, and our IWM position provides a real-time example of exactly how to do this.