The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “When should you stop laddering into a trade?” Someone asked, again, in our Facebook community and they said, “Kirk. Have you ever had the stats change enough on a trade you were laddering into that made you change your outlook on the trade and stop adding to it? If so, what happened and how often has this generally happen?” I think there’s only three cases or three reasons why you should stop laddering into a trade and actually, it’s pretty simple when you think about it and we go through it here. The first one is you shouldn’t really ladder into a trade if it's not moving. We actually do see this fairly commonly. More recently, we’ve seen this in some of our TLT positions where we execute the first laddered entry or the first set of contracts and the stock just trades dead sideways and in those cases where the stock doesn't move, that’s actually a good thing. That's what we