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From Theory to Practice - June 17, 2025 - Using Inverted Strangles to Manage Risk


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In today's session of From Theory to Practice, Jim Schultz reviewed market dynamics, including a notable drop in the S&P 500 (SPY) and NASDAQ futures (NQ), amidst upcoming FOMC decisions. He discussed adjustments on an oil position (MCL) and proposed an inverted strangle to minimize losses on a trade hampered by geopolitical tensions. The importance of FOMC was emphasized, highlighting how Jerome Powell's press conference, and more importantly tie color, could sway markets. Viewers engaged with questions about strategies and risk management in volatile conditions, reinforcing the session's educational focus.
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