From Theory To Practice - August 30, 2021 - Finding the Minimum Value of an Inverted Strangle

published 3 weeks ago by tastytrade, Inc.

Inverted Strangles are a necessary evil when it comes to our adjustment process. While going inverted is never a desirable situation, it does allow us to extend the duration of a losing position while simultaneously reducing overall risk in the position. One important aspect of an Inverted Strangle is the fact that the width of the inversion effectively sets the minimum price for the Inverted Strangle. Here's why.

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