You are bullish on a stock or sector. You see upside ahead. It’s important to understand the probabilities, risks, and costs of the various options.
A short strangle is a neutral strategy that profits when the stock stays between the short strikes as time passes, as well as whether there are any decreases in implied volatility. The short strangle is an undefined risk option strategy. Directional Assumption: Neutral Setup: Sell OTM Call Sell OTM Put Ideal Implied Volatility Environment: High … Continued