In the world of options trading, these two terms are often thrown around interchangeably, leading to massive confusion for individual investors. In this episode, we cut through the wordplay to define exactly what these maneuvers mean for your portfolio.

We explore how an adjustment acts as a broad category for any tweak to a current trade—whether you're adding contracts, bolting on new spreads, or changing the overall structure. You'll also learn why a roll is a specific subset of adjustments used to move a trade vertically in price or out in time. Using real-world examples like a MasterCard call spread, we debate whether you should "continue a fight you're already losing" or simply stick to your original trading plan.

Tools & Concepts Discussed: Vertical rolls, time rolls, credit vs. debit rolls, and index vs. individual stock volatility.

Are you clear on your "line in the sand" before you click the trade button? When a trade moves against you, do you prefer to adjust the structure to lower your risk, or do you prefer to roll it out and wait for more time? Subscribe to the Options Trading Podcast for more step-by-step guidance!

• Adjustments are the Broad Category: An adjustment is any change made to a trade's structure, such as adding contracts or turning a spread into a condor to change the delta or theta.

• Rolling is a Specific Subset: A roll involves closing a current position and opening a new one with a later expiration (roll out) or a different strike price (roll up/down).

• Vertical vs. Time Rolls: Traders can perform vertical rolls to move strikes further from the money or time rolls to give the trade more room for theta to kick in.

• Credit vs. Debit Strategy: It is generally recommended to roll for a credit rather than paying a debit. Paying a debit for a roll means taking money out of your pocket for a gain you haven't yet realized, which can be wasted if the stock continues to move against you.

• Asset Type Dictates Strategy: Indexes are often better candidates for adjustments because they move slower and more predictably, while individual stocks (like MasterCard) can have "5-standard deviation moves" that make adjustments futile.

"An adjustment really is continuing the same trade; rolling it from one month to the next is often just continuing a fight that you're already losing."

• 1:26 – Definitions: Why "adjustment" is the big category and "roll" is the subset.

• 5:04 – The Mechanics: Vertical rolls (price) vs. time rolls (expiration).

• 8:36 – The MasterCard Case Study: When to get out vs. when to move the trade.

• 11:40 – The Debit Trap: Why you should avoid paying to roll a losing position.

• 14:40 – Index vs. Stocks: Why standard deviation moves change your adjustment logic.

Confused about your next move? Share this episode with a fellow trader! Leave a review on Apple Podcasts or Spotify and tell us: do you prefer rolling for time or adjusting for price?

Choosing your very first options trade can be a paralyzing decision, but it doesn't have to be. In this episode, we break down the three fundamental strategies every beginner should consider: covered calls, naked puts, and credit spreads. We share personal stories—from landline calls to brokers to the evolution of a "24% a year" blog—to illustrate how these strategies perform in real-world bull and sideways markets.

You'll learn why the covered call is often the "gateway" trade that gets nervous investors into the pool, why naked puts are like "hunting for bargains," and why credit spreads are eventually the superior choice for small accounts and diversification. We also provide an honest reality check on the risks, including the "10-year war" of holding stocks during a crash.

Tools & Resources Mentioned: The Passive Trading Book, blogger platforms for journaling, and the concept of "Black Friday" stock shopping.

Are you ready to move past the "options are too risky" myth? If you could only master one strategy for the rest of your life, would you choose the simplicity of a covered call or the flexibility of a credit spread? Subscribe now for more simple, step-by-step guidance!

• The "Big Three" for Beginners: New traders really only need to master three strategies: covered calls, naked puts, and credit spreads. Each offers a different entry point depending on your capital and risk tolerance.

• Covered Calls as a "Gateway": This is often the best "first trade" because it is easy to conceptualize. If you already own stock, selling a call allows you to generate income (often 2% a month) while you wait for the stock to be called away or the option to expire.

• Naked Puts as Bargain Hunting: Selling a naked put is essentially getting paid to wait for a stock you want to buy at a lower price. It is more capital-efficient than a covered call but requires "hunting for bargains" on quality companies you actually want to own.

• The Evolution to Credit Spreads: While harder to conceptualize initially, credit spreads are often the "end game" because they free up capital, allow for diversification (bullish and bearish trades simultaneously), and provide more ways to adjust the trade if the market turns.

• The Importance of Stock Selection: High premiums are often a trap; they usually signal high volatility and a higher likelihood of the stock "burying" you. Success depends on picking stocks you wouldn't mind holding for the long term if the trade turns into a "war".

"The slow and steady trader, the one managing risk, will beat the gunslinger in the long run."

• 0:40 – The Coaching Call Question: What is the easiest strategy to learn first?

• 3:15 – The "Taxi Driver" Story: How 25% monthly returns in old books set the hook for covered calls.

• 7:12 – Why Brokers Push Covered Calls: The psychological safety of "getting in the pool".

• 11:57 – The Volatility Trap: Why chasing high premiums on naked puts can lead to assignment.

• 13:12 – The Credit Spread Shift: Why small accounts eventually move to spreads for diversification.

• 19:15 – The "Long War": A warning about the .com crash and the danger of not cutting losses.

Ready to stop guessing? Share this episode with a friend who's been too scared to trade options! Leave a review on Apple Podcasts or Spotify and tell us: what was the very first options trade you ever made?