One key element in successful trading is in knowing when a trade needs to be adjusted. In order for this to occur efficiently, the initial trade design needs to provide some flexibility to maneuver. I have a half position left in $GME & coming in to today this is what it looked like:
Short the June 31 Put
Long the 32 Call
The 2 Option pieces are viewed as a Bear Collar
The stock has been pushing up this week & today it hit my trail stop on the stock piece. This left me with the 2 Option pieces noted above — which now become a regular Risk Reversal trade given that there is no stock piece.
Now the trade is on offense.
You can view the Position Updates post from this past weekend for more details on the initial trade.