One of the arts of discretionary trading is practicing the ability to change our minds when facts or circumstances change.
We are not wed to following a rule rook.
There is no requirement to do "x" when "y" happens.
Of course, few discretionary traders succeed without some set of rules that are more like Best Practices. The rules may be fluid and change with market conditions, but there are almost always some guardrails in place. If for no other reason than to protect ourselves from ourselves.
The broad market selloff these past couple weeks has caused us to defensively roll a bunch of our short puts, which has eaten into our overall net positive cashflow. This will happen from time to time. But it definitely has spurred me to update my guardrails.
As the June monthly options cycle rolled off the board this past week, this makes July monthly options the "front month" options. As such, any new positions we'll be adding starting this coming week will be in the August monthly expiration series.
Since we'll be starting to roll out of our July options, I wanted to update you on how I likely see our current positions playing out.
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