Anatomy of a Trade

Rolling an Iron Condor in MCD

Anatomy of a Trade

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, seeing High IVR in MCD after its earnings, we put on a neutral, wide Iron Condor position as a synthetic Strangle. 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 roll and manage the position.

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.

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