An Inverted Strangle is an adjustment strategy that we use often to defend positions gone wrong. In going inverted, however, it’s always a challenge to choose the right strike on the inversion. Going right to the new at-the-money strike does maximize extrinsic value, but it might also lock in a sizable loss for that cycle.
So today, we weigh the gimmes and the gotchas of inverted strike selection.
And we’re live on YouTube, so we spend the bulk of our time answering YOUR QUESTIONS.
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