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5.2. Short Strangle

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
+
AdvancedNeutralLow• Short PutUncappedCappedIncome
   • Short Call   


5.2.1. Description

The Short Strangle is a simple adjustment to the Short Straddle to improve the probability of a profitable trade by widening the strikes and therefore the breakeven points. Instead of selling ATM options, we sell OTM calls and puts, which means a lower net credit but typically wider breakeven points.


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