Options Trading Concepts Live

DKNG Anatomy of a Trade

| Dec 15, 2023
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    Options Trading Concepts Live

    DKNG Anatomy of a Trade

    Dec 15, 2023
    In this video, the hosts discuss a three-year trading journey in DraftKings. The trade started with a strangle position and went through various adjustments, including taking shares, selling covered calls, and rolling the short options. Despite the stock's volatility and significant price swings, the trader was able to reduce their basis and keep the position alive. Ultimately, the trade resulted in a scratch, with the trader recouping their losses and ending up with a small profit. The hosts emphasize the importance of staying small, being flexible with adjustments, and collecting extrinsic value to reduce basis in high IV products. They also highlight the risk involved in long-term trades and the need to adapt to changing market conditions.

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