Chuck Moore
Member
Thanks Steve. Your first model is what I've seen in some of the trades you've shared. An alternative to that (for the same trade) would be to have the 5 upper long puts at 4340 vs 4320 as you have in the second model you provided. In other words, for essentially the same trade you can either roll IN 5 of the lower puts or roll OUT 5 of the upper puts. I was asking you what was your reason for rolling IN the lower puts vs. the alternative? I mentioned the tradeoffs between the 2 approaches above concerning margin risk vs theta. It may simply be traders' choice but I was curious if I was missing something.