Short Strangle Strategy
Low VolatilityAdvancedPremium Selling
Sell out-of-the-money calls and puts to profit from time decay and low volatility.
How It Works
1
Sell OTM Put: Sell a put option below the current stock price.
2
Sell OTM Call: Sell a call option above the current stock price.
3
Profit Zone: Collect full premium if stock stays between strikes at expiration.
Key Metrics
Max Profit:Total Premium Received
Max Loss:Unlimited (beyond breakevens)
Upper Breakeven:Call Strike + Total Premium
Lower Breakeven:Put Strike - Total Premium
Best Case:Stock between strikes at expiration