Assertion: straddle's loss | /r/HasProperty | incurred
Facets:
Source sentences:
text: However, if the direction of the movement is not significant enough, then a loss will still be incurred.
text: As the market moves strongly in one direction, the gain made on one leg exceeds the loss incurred on the other, and the straddle increases in value.
text: Large losses for the short straddle can be incurred when the underlying stock price makes a strong move either upwards or downwards at expiration, causing the short call or the short put to expire deep in the money.
text: Maximum loss for the calendar straddle is limited and is incurred when the stock price had moved drastically in either direction on expiration of the near term straddle.
text: Although the upside/downside risk profile of a short strangle is the same as for a short straddle, risk is lower because the price of the underlier would have to move further in either direction before losses are incurred.