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10/01/19: Portfolio Analysis - Short Delta Hedge with IBM

From Theory To Practice

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In today’s portfolio analysis, we have an interesting situation brewing with our Inverted Strangle in IBM. This trade is actually approaching its expiration, but rolling out into the next cycle isn’t really an option, due to IBM’s upcoming earnings announcement. Still, given that we need IBM to move lower, this short delta position actually acts as a nice hedge against our net bullish portfolio. As a result, we don’t mind holding it a bit longer.

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