A short strangle is an options trading strategy designed to generate income in stable market conditions. It involves selling an out-of-the-money (OTM) call option and an OTM put option with the same expiration date on the same underlying asset. This strategy profits from the premiums received from selling these options, provided the underlying asset’s price…
Introduction Option selling is a powerful strategy that allows traders to earn consistent returns by collecting premiums. Unlike option buyers who aim for large directional moves, option sellers benefit from time decay (Theta) and non-movement in price. In this guide, we will explore the best option selling strategies, their risk-reward profiles, and when to use…