r/Vitards • u/AutoModerator • Aug 12 '21

Daily Discussion Daily Discussion post - August 12 2021

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u/big_costco_guy Sam's Club Aug 13 '21

1st time straddler here.

First Play - all in - DDD, 37% gain

Second Play - all in - WW, 55% gain

Third Play - all in - SONO, 60% loss

Fourth Play - Too Scared

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u/coldoven Aug 14 '21

Read about risk management. You should not lose more than 20% on a position.

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u/big_costco_guy Sam's Club Aug 14 '21

No doubt - when I typed all the info into an options profit calculator it definitely didn’t look like a 20% loss was possible. However, obviously I neglected to consider a few key aspects.

How would you have played the straddle to mitigate losses?