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Ep. 226 Tom Sosnoff: How To Trade Earnings Moves With Options Using Implied Volatility

Investing With IBD

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How to Manage a Short Strangle

Short strangle is about either staying in a range or going outside of that range, depending on if you're doing a short or. It's typical trading. You're doing these very high probability trades, you know, 80%. But as you said, when you're wrong, sometimes, you know,. one wrong trade can wipe out the gains from a lot of right trades. So how do you kind of manage that? That is the most challenging thing about being short premium and about doing trades that have an extremely high probability of success. And I think if you stay small enough,  I just like, I like to be right.

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