Market Measures - April 10, 2018 - Managing Short Straddles: How Early is too Early?

Summary: In this segment, Tom and Tony breakdown the team’s research on short straddles and if there is any benefit to managing before 25% of max profit. The team did a comprehensive study looking at the S&P 500 ETF from 2005 to present. They analyzed short [straddles](https://www.tastytrade.com/tt/learn/straddle) [managed](https://www.tastytrade.com/tt/learn/managing-winners) at 5% increments from 5% to 25%. Certain results within the data may be consistent with expectations. Managing for a lower percentage increases the success rate while the higher percentage targets see higher average P/Ls. The interesting findings lie in the results regarding the P/L per day, how much more time the trade historically had to be held compared to the additional P/L of each target. Tune in for Tom and Tony’s full break down of the study as well as their personal takeaways.