Prepare for almost anything by outlining and organizing a trading response for every for every short option position

Investors should formulate a contingency plan as soon as they place a trade. 

In the example of trade management below, the flowchart lays out actions to take for several possible scenarios. Improving mechanics this way is a key to successful trading, and a tool like this can help. 

Mike Hart, a former floor trader at the Chicago Stock Exchange and proprietary futures trader, specializes in energy markets and interest rates @mikehart79. Anton Kulikov is a trader and data scientist @antonkulikov. Both are research analysts at tastytrade.