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The Option Alpha Podcast

151: Adjusting Short Straddles For $540 Profit (EWZ Case Study)

The Option Alpha Podcast

Kirk Du Plessis

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

4.81.2K Ratings

🗓️ 16 January 2019

⏱️ 34 minutes

🧾️ Download transcript

Summary

Show notes: http://optionalpha.com/show151 All over the internet, you'll hear stories of why short straddles and short strangles should be avoided at all costs. Stories of how trading "undefined" risk positions can blow up your account when the market moves against you quickly. And while position sizing still needs to be managed appropriately, the fact remains that properly adjusting short straddles and rolling for duration and premium can help turn so-called losers into profitable positions....

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.

0:19.0

Hey everyone this Kirkier again from option alpha.com working every single week to make this the most popular

0:24.4

investing podcast offered online because it's based on one thing and one thing only and that's

0:29.2

helping you guys make smarter trades and so again thank you so much for tuning in today on

0:33.6

today's show. We are going to be going through another case study in adjusting

0:38.4

trades and in this case we're not necessarily talking about trades that we were

0:42.0

assigned like what we went through in show number 149,

0:45.8

but we're going to be talking about how we adjusted multiple short straddles in EWZ as the stock was taking off from recent lows.

0:54.6

So again, a really good case study, another example of how we would go through the process

0:59.9

while we're walking through the trade kind of in this timeline for you guys

1:04.0

so that hopefully it helps you guys understand the process and how to make smart trades,

1:07.6

how to be more confident in adjusting positions and kind of sticking with it

1:12.3

throughout the entire timeline.

1:13.8

So again, as always if you guys have any questions or want to see a history of things as we go through

1:19.0

them, head on over to the show one

1:23.9

151 again that's just the number 151 option alpha com

1:28.3

slash show 151 option alpha com slash show 151 now I will point out though that another

1:32.2

case study that you might want to take a look at that's related to this if you want to stick on the topic of E.W.Z. Is the case study where we were looking at our short put assignment in E.W.Z. that actually happened right before we got into this

1:45.2

trade which we had to adjust multiple times. So it's kind of interesting we basically got

...

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