Short Strangle
High-risk strategy profiting from low volatility.
Intermediate
Market Outlook
neutral
Family
volatility
Capital Req
high
Risk Profile
low
Strategy Overview
Key characteristics and when to use
Structure
Sell OTM Call + Sell OTM Put
Greek Profile
Delta neutral, positive theta, negative vega
Characteristics
CreditNeutralIntermediateHigh Risk
Profit & Loss Formulas
Mathematical breakdown
Max Profit
Total premium received
Max Loss
Unlimited
Breakeven
Call strike + total premium OR Put strike - total premium