This is an example of evolving a position into one that works better in response to changing conditions.

At times when options are cheap, it seems like a good idea to buy them. But when they are cheap, it?s because the option-buying public doesn?t believe there will be much price movement in the near future.

This week, as I occasionally do, I?ll answer a couple of questions that readers have sent in regarding options.

Today we?ll look at a way to simulate that strategy in cases where we are not permitted to do credit spreads.

One of the greatest things about options is that they can be used for so many different purposes. One of those is to generate income in a relatively conservative manner.

In my last article, I discussed methods of locating options opportunities. I wrote that we can either approach the search from the standpoint of stock price, or of implied volatility.

Options are exciting to trade for many reasons. They offer so many opportunities that the sheer volume of possibilities can be overwhelming. How can we go about finding the good ones?

This is part 2 of an article on Position Evolution. In the first article, I began describing an example of a transformation of one option position into another type of position, to create a position that was better fitted to changing market conditions.

Recently I?ve been writing about exiting an options position. I talked about stops, and also about rolling a position to more favorable strike prices and/or expirations. Today I?ll introduce the idea of position evolution, which is different from either stops or rolling.

Last time I began discussing ?rolling? an option position.