Posted 11/5/2010 16:36 (#1423135 - in reply to #1423112) Subject: Re: Broker wants me to roll up puts
4:1 or the 25% rule refers to trying not to spend more than 25% of the value of the increase in strike on Puts. Ideally, it is NOT done every 10-20 cents in strike becuase they you KNOW they are just out for commission.
Example would be rolling up Put strikes $1.00 and only spending $.25 (i.e. 25% of the $1)
Broker wants me to roll up puts
