From Theory To Practice - July 6, 2021 - Managing a Tested Straddle

published 2 weeks ago by tastytrade, Inc.

With strategies like Short Strangles, the adjustment protocols are more straightforward. When one side is tested, we look to roll the other, untested side. With a Straddle, however, the adjustment maneuvers are less obvious. Since one side of the strategy is always “tested”, it’s a lot less black and white. To illustrate how to handle these situations, we take a look at the two Straddles we currently have on in our portfolio.

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