Why We Adjust Positions at 21 DTE

<p>Spend enough time around tastytrade, and you quickly learn that we like to adjust our positions at 21 DTE, specifically, our undefined-risk positions. Doing this effectively yields two distinct benefits.</p> <p>First, our research has shown that overall results are always more reliable in the first half of the expiration cycle, so by managing at 21 DTE, we’re indirectly taking advantage of that finding. Second, the risk of our positions (i.e. <a href="https://ontt.tv/2Rl4p0O" target="_blank">gamma risk)</a> grows significantly the closer to expiration we carry it. Thus, <a href="https://ontt.tv/30P9IL7" target="_blank">by adjusting or exiting at 21 DTE</a>, we’re avoiding the negative implications of this added risk.</p>