The Best Way to Adjust a Short Put

The Short Put is without question one of our staple strategies at tastytrade. Its unique structure of being <a href="https://ontt.tv/2QiLWRu">positive delta and negative vega</a> allows it to gain profitability quickly, in the event that the stock does indeed rally. Still, there will inevitably be times when our Short Puts <a href="https://ontt.tv/2LwSZYV">get tested</a>, and we have to adjust our positions. When that happens, here’s the best way to think about your Short Put and its management.