Short Strip Strangle

Short Strip Strangle - Introduction
The Short Strip Strangle, is a Short Strangle which writes more put options than call options and has a bullish inclination. As a Neutral Options Strategy, Short Strip Strangles are useful when a stock with a neutral outlook is assessed to have a higher chance of breaking out to upside than downside. Short Strip Strangles transfers some of the downside risk to upside, creating an asymmetric risk graph that makes a lower loss if the stock breaks to upside than upside. Short Strip Strangles also make a higher maximum profit than a regular short Strangle due to the fact that the minimum amount of short options are more than a regular short Strangle. It is this flexibility in transferring risk that makes options trading so versatile.

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