How Position Adjustments Can Alter Your Max Loss

<p>Adjusting our positions over time is a key piece to the puzzle, when it comes to tastytrade management mechanics. Normally when we roll or adjust a position for a credit, it not only <a href="https://ontt.tv/75SCl">adds duration to the trade</a>, but it also reduces our max loss, too. Interestingly, with a strategy like a Broken-Wing Butterfly, however, this is not necessarily the case. <a href="https://ontt.tv/isYXE">With our QQQ BWB</a>, we actually increased our max risk when we closed out the Long Put Vertical Spread portion of the strategy, and today we explain how that happened.</p> <p><a href="mailto:Dr. James Schultz (@jschultzf3) / Twitter">Be sure to connect with Dr. Jim on Twitter!</a></p>