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Lesson 14 of 17Advanced10 min

How does adjusting crypto options work when Bitcoin moves against you?

When Bitcoin walks toward a strike you sold, there are three common adjustments. Buy a hedge further out to cap that side. Roll the strike away by buying it back and selling a further one. Or exit that side and keep the rest. Doing nothing is also a choice, and it carries the most risk.

Real Delta Exchange quotes · 24 Sep, 9:01 am ISTFree, no account needed

Step 1 of 4

The problem

You sold a strangle on Monday. By Wednesday the price has walked up towards the call you sold. The position is losing and the danger is only on one side.

Doing nothing is a choice too. Look where the number goes if the price keeps going.

The position · expires Fri 2 OctSell 82,500 put1,012 per BTCSell 85,500 call1,093 per BTC10 lots = 0.01 BTC · real Delta Exchange quotes
If Bitcoin is at87,398
+4.0% from today
at expiryFriday
you make+2.07
On ExpiryOn Target Date
−30.0−20.0−10.00.0010.020.030.0-1SD+1SDCurrent price: 84,036.180,00082,50085,00087,50090,000Profit / loss

Profit or loss if the price is 87,398(your target)

DateProfit / loss
On target dateFri, 2 Oct+2.07profit
On expiry dateFri, 2 Oct+2.07profit

Move over the graph to read any price; tap or click to set it as the target.

  1. The 82,500 put is worth nothing at 87,398 (the price is not below the strike).
  2. The 85,500 call is worth 1,898 per BTC (87,398 − 85,500).
  3. Together the options are worth −18.98 USDT to you on 0.01 BTC.
  4. You received 21.05 USDT when you opened the trade.
  5. Result: +2.07 USDT.
Max profit 21.1Max loss unlimitedBreakeven 80,395 and 87,605Chance of profit 60%Credit received 21.1
Try this

Step 2 of 4

Choice 1: buy a hedge

Buy the call two strikes above your sold call. The call side now has a floor. The put side is untouched.

Costs some income. Keeps the trade alive. This is what the engine's Buy hedge rule does automatically.

The position · expires Fri 2 OctSell 82,500 put1,012 per BTCSell 85,500 call1,093 per BTC10 lots = 0.01 BTC · real Delta Exchange quotes
If Bitcoin is at89,078
+6.0% from today
at expiryFriday
you lose14.73
No adjustmentPrice

Price at 89,078 → the trade sits at −14.7

Buy a hedgePrice

Buy a hedge → the upside loss is capped (+3.19 here)

At 89,078: −14.73 no adjustment · +3.19 buy a hedge. Buy a hedge is 17.9 better at this price.

Max profit 21.1Max loss unlimitedBreakeven 80,395 and 87,605Chance of profit 60%Credit received 21.1

Step 3 of 4

Choice 2: roll the call away

Buy back the threatened call and sell a new one three strikes higher. The danger moves up and you keep collecting premium.

You book a loss today on the buy-back. The risk is still open-ended above the new strike. Works when the move is nearly done.

The position · expires Fri 2 OctSell 82,500 put1,012 per BTCSell 85,500 call1,093 per BTC10 lots = 0.01 BTC · real Delta Exchange quotes
If Bitcoin is at89,078
+6.0% from today
at expiryFriday
you lose14.73
No adjustmentPrice

Price at 89,078 → the trade sits at −14.7

Roll awayPrice

Roll away → −4.15 here, 10.6 better

At 89,078: −14.73 no adjustment · −4.15 roll away. Roll away is 10.6 better at this price.

Max profit 21.1Max loss unlimitedBreakeven 80,395 and 87,605Chance of profit 60%Credit received 21.1

Step 4 of 4

Choice 3: exit the call

Buy back the call and keep only the sold put. The upside risk is gone completely. Now you only need the price to stay above the put.

Simplest of the three. Least income, least worry.

The position · expires Fri 2 OctSell 82,500 put1,012 per BTCSell 85,500 call1,093 per BTC10 lots = 0.01 BTC · real Delta Exchange quotes
If Bitcoin is at89,078
+6.0% from today
at expiryFriday
you lose14.73
No adjustmentPrice

Price at 89,078 → the trade sits at −14.7

Exit the callPrice

Exit the call → the upside loss is capped (+10.1 here)

At 89,078: −14.73 no adjustment · +10.12 exit the call. Exit the call is 24.9 better at this price.

Max profit 21.1Max loss unlimitedBreakeven 80,395 and 87,605Chance of profit 60%Credit received 21.1
Quick check

Which choice removes the upside risk completely?

Answer the quick check to finish. Your progress stays in this browser.

Next: Managing the trade: stop, target, trailing

Key terms

Adjustment
A planned change to an open position when the market moves.
Roll
Close a strike and open a further one in its place.
Hedge
A bought option that caps a loss.
Exit a leg
Close only the threatened side of a position.

Questions people ask

When should you adjust an options trade?

Before the loss gets large: typically when the price comes within a strike or two of a sold strike, or when one leg loses a set amount. Decide the rule before the trade.

Which adjustment is best?

It depends on the move. A hedge keeps the trade alive if the move continues. A roll keeps collecting premium if the move is nearly done. Exiting is simplest and removes the risk.

Can adjustments run automatically at night?

Yes. Algoclear runs adjustment rules for you around the clock: five triggers, such as Bitcoin nearing a sold strike, and six actions, such as buying a hedge or rolling away.

Keep going

Why adjustments exist

Short options earn slowly and lose quickly. An adjustment is a planned response that limits the damage without closing the whole trade, so one bad move does not wipe out many good weeks.

Crypto moves while you sleep

Bitcoin's biggest moves often come at night in India or over a weekend. A rule written in advance, and an engine that watches every second, means the adjustment happens on time even when you are not at the screen.

The cost of each choice

A hedge costs premium. A roll books a loss on the buy-back and leaves open-ended risk above the new strike. An exit gives up that side's remaining income. No adjustment is free; the right one fits the move.

Written by the Algoclear team · Updated 22 September 2026 · Examples use Bitcoin options on Delta Exchange India.

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Options trading carries risk, and you can lose money. Algoclear is a trading tool, not investment advice.