IndexTrader wrote: So your intent would be to repeat this process over & over? Yes, because it lowers your breakeven so far for only .25 more risk. Usually what happens after the stock makes a move in such situations is that at least 1 or both of those options could only be liquidated for less than you had assumed. (Not exactly a very liquid marketplace and VERY opportunistic). This is theory, not hard numbers, but very doable. No one knows where a stocks price will go, playing for position. Not interested in liquidating the 25 put, anything lower than 25 would exercise,same with the 30, because the total risk was 1.50, now 1.75 and the breakeven is lower by almost $5, or if the risk was favorable do the same thing again at 21/22(sell the 25, buy the 20)if you are only giving up .25 more risk.