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Adjusting option positions involves modifying existing trades to align with market movements or changes in strategy. Common methods include rolling options—closing an existing position and opening a new one with a different strike price or expiration date— and adding protective options, such as buying puts to hedge against potential losses. Traders may also adjust their positions based on volatility, liquidity, or changes in the underlying asset's fundamentals. Regularly monitoring market conditions is essential to determine the appropriate adjustments.

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4mo ago

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