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Is not rolling an ITM option form of risk management?

Thanks for you observation. I agree with you if you keep the same strike when you roll. However, if you roll down in strike, you are taking risk off the table and improving your P&L position.

When selling options to grow a portfolio you rely on banking that weekly/monthly premium. However, there will be times when the option you sold becomes ITM. What does the option seller do? Ah...yes, roll the option for a credit! Having sold options for 3 years now, I made many mistakes...

Part 5 now available! Over 50% ROI in 2 months!! I’ve got a feeling the next trade might be a debit if Tesla continues this downward move!

Part 4 is up! We know that Tesla has been selling off but thankfully Elon tweeted he is done selling his share and Tesla popped up over the past couple of days. This has allowed me to roll for another net credit!

Part 3 of the journey has now been posted. Appreciate your support thus far! - Tesla has dropped so had to roll out to January to receive a net credit. Fairly comfortable with my position

If the price drops to around 1,100-1,050 I would roll out at the same strike (or down) a few more weeks to give myself more time to be right. Hopefully, there will be enough theta to make this roll a net credit. If not, then I would either roll out further or take a small net debit.

Here is part 2 of the journey! - Rolled the first trade up and forward for another net credit.

The delta was around 0.3. Yes I am paying commissions. I will start to add these to my ROI

Thanks so much! The first trade is over 60% in profit so will be looking to roll next week.

Hey Guys, Wanted to share my video journal of me growing a $500 account trading Tesla put credit spreads. The goal is to trade 5 point wide Tesla put credit spreads risking $500 collateral, with an expiration 3 weeks out. For the strike, I will use support / resistance areas combined with the...