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Short Straddles

Analyzing the risk profile of a short straddle

XX Welcome to Short Straddles!

Key Things To Remember As A Beginner:

  • straddles are a combination of a
    and
    at the same
  • Straddles carry risk above and below a central profit zone
  • Short straddles profit when option prices decrease
  • They lose if option prices increase
  • The most you can make on a short straddle is the credit received

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neutral strategies