Should You Ever Widen Out an Inversion?

<p>As we extend the duration of our losers and make the necessary adjustments to our positions, <a href="https://www.tastytrade.com/tt/shows/201/episodes/56687?utm_campaign=archive&amp;utm_medium=link&amp;utm_source=social-share">Inverted Strangles</a> are in our toolbox and ready to be called on when needed. In this scenario, our end goal is for the stock to stay within our short strikes, and the <a href="https://ontt.tv/2tZhWA4">extrinsic value</a> to drain off the options. So what do we do when the stock moves significantly outside of our short strikes? Do we ever consider widening out the inversion even more?</p> <p>With our Inverted Strangle in LVS, we work through this exact situation - highlighting the gimmes and gotchas relevant to this decision.</p>