Have some questions for bwb traders
Placing the trade too far out the amount of credit would be little especially market has rally and dte has fall. In such situations what are the ways to adjust the bwb to upside given little credit? Adding more contracts would increase risk and the amount of little credit does not justify the risk
If I understood your question correctly you have a couple of choices. First, you could roll down all or some of the upside options. Basically, by doing this you, will be raising the right side of the BWB. Of course, you will be adding risk to the downside (left side) of the BWB. Another option would be to overlay a fly, calendar, or IC to the upside. Again, you will be increasing risk (i.e., margin). In this case, you will also be complicating the trade. I am sure that there are other ideas out there. Hope that this helps.