Where Do I Start?: Young Money

When IVR Overrides Time Decay

Where Do I Start?: Young Money

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Mike explains why Lindsay's $UAL strangle isn't a winning trade, even though the stock price is between the strikes. This isn't very common. But when IVR expansion overrides time decay, it can create a marked loss. This combined with the stock price creeping towards the short put, the position was not showing as profitable just yet. Lindsay must make a decision on how to manage this. Tune in to see how Mike teaches Lindsay how extrinsic value comes into play in this trade.

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