SITUATION YOU SELL DLTR options march expiration.. the 55 moved from 30 to 70 cents.. u found it reasonable.. u sold 1. now the damn thing is up to 2.05. u r furious paper loss 140$ u know this will go down... u can close this and sell 5 calls of 60 for 30 cents.. and recover ur loss. is this called MARTINGALE strategy..? so when it goes to 60.. then what do u do? close those 5 and open 65 , probably 20 of them to recoup the 60 strike loss. how do u decide . when to do this. .I WOULD SAY, rare.. as it is.. the next strike OPTION is if it is UNLIKELY to be met, the premiums are V low. hence they make u sell more to recoup your earlier LOSSES..