Which Adjustment?


Once a beginner trader has understood the general principles about risk management/adjustments, the difficult part is to correctly analyze each specific situation (where adjustment is necessary) and make a decision (based on this analysis) choosing adjustment method X and eliminating methods Y and Z for good reasons.

Do you think it could help us (beginner traders) if you could present us three different examples (preferably using ICs), where in Ex.1 the best adjustment (best for you, for the specific situation) would be the kite spread, in Ex.2 the debit spread and in Ex. 3 buying a call(put), explaining the analysis/thinking/decision process in each example?

Thank you

I’ve already replied. However the video below presents additional information.


1) Broken-Wing Butterfly video

2) Oct 5, 2011 post

3) Kite spread blog post

Kite spread video

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