WDIS: Two Yutes - Beginner Options Trading - February 26, 2021 - 21 Days To Expiration - Time to Roll

It’s the 3rd Friday of the month and it’s time to defend and manage. The markets are not as bullish as the kids want them to be today—in fact, each of Kayla’s positions have gone against her.

Kayla and Errol learn how to:

Roll in: In Kayla’s GLD iron condor, she rolls her untested call strikes in towards the current underlying stock price to reduce her cost basis, and thus reduce her risk.Roll out: Errol pays $0.07 to roll his DM put spread out to the next monthly cycle to give his bullish assumption more time to play out.Penny up and down: Both influencers find themselves in positions of hanging working orders—they need to penny up if they’re paying a debit, or penny down if they’re collecting a credit. They learn that this is called price discovery.

Finally, Tom explains why he’s always been a contrarian—always against the trend. He says if everybody’s buying something—if it looks too frothy, you have to see it as a red flag. Don’t get caught up in the hype and emotion. He instructs “don’t be afraid to think differently.”