What is the trading term for when the risk scenario occurs in a trade? Example: Based on your analysis, you expect AAPL to miss earnings, and move down, so you sell short and buy puts. The risk is that AAPL beats expectations, an you get hurt. This scenario happens: AAPL beats by $3.00. What is it called when the risk scenario happens on a trade? Tyvm, Keith =)
The rush and the crush. If you are expecting high volatility you should sell stock and buy calls. or buy calls and sell stock