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 another question from the Facebook community that we got recently which is – “When should you not add more laddered trades?” Again, the question that somebody asked was the following and they said, “How do you decide if you should add more trades to the same underlying (basically ladder into more positions) if the first trades have already started to get challenged?” This is a really good question and it's something that comes up again and again. It’s this concept of laddering which most people understand, but really quickly, it’s just the idea that we’re going to spread our trades out over time. Like rungs of a ladder, you don't jump from the bottom of a ladder to the top. You have rungs that you kind of slowly creep up or creep down to get up and down the ladder. Very much like that for trading, we’re going to ladder into positions by entering a small batch of trades in a ticker, then if