In options trading, a "strangle" refers to an options position that consists of both a call and a put option on the same underlying stock, with the contracts having identical expirations but differing ...

After we enter a short strangle, we go into position management mode. When movements in share value remain moderate we don't have a directional exposure to the underlying. We just capture time value ...

Selling options is often described as an attractive way to generate income, but it also carries a reputation for hidden risk. Stories of traders collecting small premiums for months—only to give it ...