From Theory To Practice - January 14, 2021 - Why We Don’t Adjust Vertical Spreads
A good deal of our trading philosophy is centered around defending our positions and fighting back our losers. In a market that is totally random, we like to lean on duration over direction, with the trades that don’t move in our favor early on in the expiration cycle. Further, when we do adjust our positions, we always ensure that we are reducing our overall risk and [improving our break-even points.](https://www.tastytrade.com/shows/trade-logic-unlocked/episodes/rolling-break-even-points-01-31-2019) As a result, with a strategy like a Vertical Spread, there isn’t much we can do if the stock moves against us because anything we might consider would add risk to the position and [possibly lock in a loss.](https://www.tastytrade.com/shows/trade-managers/episodes/how-to-avoid-locking-in-losses-12-04-2018)