Frankly Trading

Getting Lazy with Options: XLV

Frankly Trading

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

In this week's episode of Frankly Trading, Frank bemoans the difficulty of trading options. He specifically cites his trouble with balancing timing in his many trades across several underlying markets.

Trading naked options is one thing, as the days to expiration can be extended via rolling with no problem at all. While defined-risk trades like the Iron Condor pose more of a problem. These trades cannot be rolled out in time if they have underperformed at the time of expiration.

Frank walks through his recent Iron Condor in Health Care stocks (XLV). The trade is currently a loser, and, since he did not defend against this loss earlier, it likely expire a loser.

Check out all the specifications of Frank's recent trade in XLV and the story behind how his laziness lost him money in the above segment.

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