Anatomy of a Trade

Inverted in STX

Anatomy of a Trade

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We always look to sell with high implied volatility and after earnings STX had enough volatility for us to sell a straddle. Unfortunately, the day after entering our position STX sold off 7% so we rolled down our short call taking the position inverted.

Tune in to see how we manage an inverted strangle to take a $131 loser to a complete scratch.

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