Adjusting The XLF Options Trade

Last month we opened a diagonal option spread on the XLF, after watching the financial stocks get hammered in the market for most of the year. It appeared that the XLF had found support at around $20 per share. A video was produced showing how the trade was set up, but since that time we have adjusted the position once and are considering a second adjustment.



This second video demonstrates how the two adjustments modify the risk and reward profile of the position, to help keep us profitable as the XLF continues to move in the market.

Keep in mind that this is not a recommendation to trade or trade advisory service, but intended as an educational opportunity to demonstrate how adjustments can be made to an options position to keep your trades profitable.

Christopher Smith
TheOptionClub.com