A Short Strangle involves selling a call option and a put option at different strike prices but the same expiry. It profits from minimal price movement within the range. Ideal for low-volatility conditions, where the price is expected to stay range-bound. Selling OTM options balances premium income and risk. Risk is significant if the price … Read more
A Long Strangle involves buying a call option and a put option at different strike prices but the same expiry. It profits from significant price movement in either direction. Ideal for high-volatility conditions, where a large price move is expected but at a lower cost than a straddle. Buying OTM options reduces the upfront premium … Read more
A Short Straddle involves selling a call option and a put option at the same strike price and expiry. It profits from minimal price movement. Ideal for low-volatility conditions, where price movement is expected to remain stable. Selling ATM options maximizes premium income. Risk is unlimited if the price moves significantly in either direction. Profits … Read more
A Long Straddle involves buying a call option and a put option at the same strike price and expiry. It profits from significant price movement in either direction. Ideal for high-volatility conditions, where a large price move is expected but direction is uncertain. Buying ATM options maximizes sensitivity to price changes. Risk is limited to … Read more