Show notes: http://optionalpha.com/show108 If you trade options longer than ten days you'll undoubtedly run into a scenario where you get challenged by a stock moving either higher or lower against your position. When this happens the first question many people ask is "Do I start rolling up strike prices and adjust the position or work on closing out the trade completely at a loss?" Naturally, we are in the camp where we believe, and our backtesting confirms, that rolling your strike prices closer to where the stock is trading and taking in additional net credits ultimately gives you the best opportunity to either profit or reduce risk on the position. On today's podcast we'll explore this topic more deeply with a very detailed example and walk through so you understand conceptually how it all works moving forward.