Might be on to something here. I have an experiment running on ERX. 22 DTE 21/26 call spread. I don’t know what the news is, but all the oil service sector names just tanked and are now bouncing. Anyway, I was looking at how hard it would be to roll and it is really easy and often done for a credit.

Adjustment #1 is roll the long out or to a leap and make it a fuzzy. I could add another 9 months for 3.2 or 19 for 7.19. Then you have plenty of time to sell against it.

Adjustment #2 roll the entire spread out a month, could do that for 0.7 credit even going down a strike.

Adjustment #3 roll the short strike down same expiration for credit. At that point you lose some of the profit but still stays green.

I may experiment with some more of these going forward and will share results. Might be a better way to get higher returns with known/controlled risk. That is always a good thing 🙂

Also may be a way to ease into a #fuzzy at a lower cost and not having to initially set up as a long range trade.