114: Managing Inverted Option Positions - Once Difficult, Now Easy

The Option Alpha Podcast

Kirk Du Plessis

Education, Options Trading, Trading, Investing, Stock Market, Business, Finance

4.8 • 1.2K Ratings

🗓️ 1 January 2018

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Show notes: http://optionalpha.com/show114 Short straddles and short iron butterflies are some of our most profitable option strategies, and a consistent staple when trading in our PRO and ELITE membership levels. However, when it comes adjusting these positions and going "inverted" it can cause even the most experienced traders to freeze up. In today's podcast I wanted to walk through the process of managing inverted option positions and help you understand what numbers to track and how the ...

Transcript

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0:00.0	You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make
0:06.3	smarter trades learn how the stock market really works and generate consistent monthly
0:11.2	income. Now your host and head trader at
0:15.0	option alpha.com Kirk depluses.
0:20.0	Hey everyone this is Kirk here again from option alpha.com
0:22.0	working every single week to make this the most popular
0:24.8	investing podcast offered online and in iTunes because it's based on one thing
0:28.8	and one thing only and that's helping you guys make smarter traits.
0:32.1	So again thanks so much for tuning
0:33.4	into today's show. On today's show we are going to be talking about how you can
0:37.9	manage these inverted option positions and honestly it's something that
0:42.2	everyone assumes is very difficult
0:44.1	but hopefully after today's show will become a lot easier. It does take a little bit of
0:48.4	just cognitive thought here initially just to understand the concepts behind them but I think
0:54.2	managing inverted positions is something that people get just really scared
0:58.4	about honestly and and just don't have a solid understanding of and so hopefully I want to kind of walk
1:04.7	through an example here of how we would manage say an iron butterfly which is also
1:09.2	very similar to how we would manage a straddle that's go is inverted and why we would do
1:14.0	you know the adjustment types that we would do how we'd factor in credits and risk and
1:18.0	all that stuff like that so hopefully it'll help out for you guys if you guys
1:21.9	want to get a copy of this show notes or
1:25.2	transcript obviously you can have over to option alpha.com slash show 114 so
	...

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