Assertion: short straddle | /r/CapableOf | lose money
Facets:
value: fast
type: MANNER
Source sentences:
text: However, if the stock price “rises fast enough” or “falls fast enough,” then the straddle rises in price, and a short straddle loses money.
text: Therefore, when volatility increases, short straddles increase in price and lose money.
text: Short straddles can lose money fast, so they are rarely the best approach to make a profit from a neutral outlook.
text: If volatility increases, both the put and the call will increase in value and the short straddle will lose money.