Can I place a new trade from a roll Alert?

I’m an experienced options trader. Do I have to wait for new Trade Alerts to get started? Can I work from the second half of a roll Alert?

New traders should stick to new Trade Alerts. But once you’re an experienced options trader, sometimes old trades and the second half of rolls are viable as new trades, or can be adjusted to become viable.

We prefer adjusting the trade to have all of these attributes:

  • out-of-the-money option strikes; and
  • minimum $1.00 net credit; and
  • minimum rate of return of 20%, defined as (net credit received)/(spread width – net credit received)]; and
  • 80% or higher stock seasonality.

 We recommend starting at five-point spread widths.

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