What can you do if the short-strike of a risk-defined strategy gets tested and the stock price never came back?
On Aug 7th, seeingin MCD after its , we put on a neutral, wide position as a synthetic . We expected the stock to fluctuate within narrow range and the IV to decrease, but the market moved higher and stayed there for weeks, challenging the short side. Se we had to .
Watch this segment of “Anatomy of A Trade” with Tom and Tony to understand how they made critical decisions and turned a loser into a winner.