Adjusting a 'Trade Gone Bad'

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The Bottom Line

In conclusion, options are an extremely versatile trading tool with the ability to provide traders with a potentially lucrative alternative to trading futures contracts.  However, in order for option trading to be effective it is sometimes necessary to make adjustments and even repair a particular trade.   With a combination of skill, instinct and luck the flexibility of options offers traders the potential to profit in a market regardless of its direction.

**There is substantial loss in trading options and futures.

Carley Garner, senior analyst at DeCarley Trading, is the author of "A Trader's First Book on Commodities" and “Commodity Options” published by FT Press, a division of Prentice Hall.  Her trading e-newsletters, The Stock Index Report and the Bond Bulletin, are widely distributed and have garnered a loyal following; DeCarley Trading is proactive in providing free trading education. 

                 

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