In a market like last week, where one side of a strangle gets tested extremely quickly, we generally have a set of mechanics to defend the position.

We call this “rolling up the untested put” or “rolling down the untested call” depending on which side gets tested.

In this segment, we provide graphics that explain how your positions and profits look like for a strangle when going inverted. Check out the slides to get a cool graphical representation of the process!