Once again we discover how the upside risk can be a big risk in options trading.
Luckily we planned for a stupid move by going half size.
Now we can roll and double size on the call side.
The roll will be “cost free” in terms of keeping reward the same, but it will increase the max risk to the upside.
The way I chose the strikes to roll was to hunt down what was available in terms of credit. I did this by selecing Spread -> Deep and Wide -> 1 month, 2 strike. I then selected “Theo Price and Mark” to make sure I was getting realistic prices.
So rolling to the 2085/2095 makes the most sense.
Buy to close SPX Nov 2050/2060 Call Spread @3.90
Sell to open **2x** SPX Nov 2085/2095 Call Spread @2.10
You want to buy to close BEFORE you sell to open.
Here’s the risk after:
