From Theory To Practice - September 13, 2021 - Nothing Left to Lose

published 1 week ago by tastytrade, Inc.

Quite possibly the biggest benefit of defined-risk strategies is exactly that - your risk is defined and your worst-case scenario is known on trade entry. Therefore, when you have a position that quickly moves against you, you might see that position mark near max loss long before expiration. In these situations, it always makes the most sense to hold on as long as possible, as there is literally nothing left to lose on that trade.

more episodes from The tastytrade network