How to Trade Short Strangles: Risk, Strike Selection, and Management delta futures implied volatility options income options strategy position sizing risk management strangles

A short strangle can collect premium from both sides of an options market, but it also creates risk on both sides of the underlying price.

You sell an out-of-the-money put.

You sell an out-of-the-money call.

You collect premium from both contracts.

If the underlying stays between the two strik

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