Short Strangle - Components
Sell an equal number of out of the money call and put options at the same strike distance from the prevailing stock price.
Sell OTM Call + Sell OTM Put
Short Strangle - Expectation
Neutral
Short Strangle - Risk / Reward
Maximum Profit: Limited
Maximum Loss: Unlimited
Short Strangle - Breakeven Point
Upper Break Even Point = Strike Price + Net Credit Recieved
Lower Break Even = Strike Price - Net Credit Recieved
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