3. Cost Basis Improvement is the Heart of a Good Decision
To achieve better odds, one of two things needs to happen. Either the market must move in our favor, or we must adapt to current market conditions. Unlike we option sellers don't have to pray for the market to move in our direction. If the market won't accommodate our needs, we can slowly and consistently shift our break-even to a more favorable position. With a proper understanding of option mechanics, our arsenal allows us to reduce costs, and improve our odds without taking on additional risk. When the time to take action comes, ask yourself:
Does this decision reduce my risk and improve my odds of making money?
Find solutions where the answer to that question is a confident "Yes".