OAP 151 : Adjusting Short Straddles For $540 Profit (EWZ Case Study) 6nk3g

Show notes: http://optionalpha.com/show151 All over the internet, you'll hear stories of why...

Show notes: http://optionalpha.com/show151
All over the internet, you'll hear stories of why short straddles and short strangles should be avoided at all costs. Stories of how trading "undefined" risk positions can blow up your when the market moves against you quickly. And while position sizing still needs to be managed appropriately, the fact remains that properly adjusting short straddles and rolling for duration and can help turn so-called losers into profitable positions. In today's show, we'll focus on our most recent case study in EWZ in which we turned this losing set of straddles into a $540 winner with a little patience and some mechanical adjusting.