What is a Short Strangle and Why would you place one? It is important to understand how a short (naked) call and a short (naked) put work before you commit to placing your first strangle. Why? Well because a strangle is basically the same as selling either a short call or a naked put as […]
Covered Call – The Strangle Entry When people learn option trading strategies they typically start with the old faithful of option trading strategies, the covered call. Trading a covered call option strategy is one of the foundation option trading strategies that everyone learns. But, what some people do not realize is that a covered call […]
Strangles – What are they and How do we Trade Them? Strangles are the only uncapped risk, limited reward strategy we trade. As a result we are highly selective about how we trade Strangles. We base our strangle trades like we place our probability based non-index and Broken Wing Iron Condors. We use probabilities and […]
