The short strangle option strategy is an opportunity to profit when a stock moves sideways. Instead of just selling one call or one put, you sell one of each, which produces twice the income. But the maximum loss with this type of trade is unlimited, while the potential gain is capped at the amount of premiums received.
Related To: Short Straddles
The short straddle can profit when a stock stays stuck in a flat, range-bound zone, but the limited reward and unlimited risk make it one for experienced traders.
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