Max Losses on Undefined-Risk Positions

Undefined-Risk positions are a staple to every tastytrader. They have the ability to yield <a href="http://ontt.tv/2rtZkb9">unfiltered exposure to the Greeks</a>, such as positive theta and negative vega. Furthermore, these positions are often easier to adjust over time. Even given these benefits, however, undefined-risk positions are still just that: undefined-risk. But how undefined is undefined-risk? As we look to put on an undefined-risk trade in GDX, we work through the difference between <a href="https://youtu.be/_U7NqmoL1mY">theoretical risk and practical risk</a>.