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neutral strategies
Short Strangles
Analyzing the risk profile of a short strangle
XX Welcome to Short Strangles!
Key Things To Remember As A Beginner:
- strangles are a combination of an and an OTM
- Strangles carry risk above and below a central profit zone
- Wider collect less but have a higher
- Narrower strikes collect more credit but have a lower POP
- Short strangles profit when option prices decrease
- They lose if option prices increase
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