Call Option Trading Secrets

Definition Mumbo-Jumbo
Options, unlike stocks, are derivatives. That means that their value derives from the value of another financial instrument (called the underlying). The underlying can be a stock or futures contact or an index. For the purpose of this article we’ll concentrate on stocks.
An option is a contract between two parties, the writer (the seller) [...]

When adjusting the delta on an option spread to manage risk, many option traders do not understand how to use volatility to adjust a position in their favor.
For example, let’s say you are in a butterfly spread and the market trends up and hits your adjustment point. So what kind of adjustment do [...]