Need clarification on 1:1
What I understand about 1:1 on binary strangles (as in the straddle type) and what I see being done does not always match what I think I am hearing on the instructional videos.
The thing about 1:1 is that I keep going back and forth on what are the right figures.
As a general example: If you risk 30 you want to make 60. That’s easy to understand.
As an example of a binary strangle:
+1 $15 -1 $82 ($18) Total Risk: $33
If the total risk is $33 then I want to make $66. If you make the $66 back. Does that include the risk on the other side of the trade or does it not?
So based on the trade example above which would be the right 1:1 exit?
a. +1 @ $48 or $81 b. -1 @ $49 or $16 c. or is there a better answer?
(I hope my math is right) Hope to hear from someone! Thanks!
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