The short strangle (SS) can be a profitable strategy when used correctly, but it also has potential downsides, including unlimited loss potential and the need for careful monitoring of the underlying asset‘s price movements. What is a short strangle? A short strangle is an options trading strategy that involves selling a call option and a…
A covered call option strategy, known as a buy-write strategy, is an options trading strategy that involves buying an underlying asset such as a stock, and then selling a call option on that same asset. The goal of this strategy is to generate income from the premium received from selling the call option while also…
A cash Secured Put (CSP) is an options trading strategy that involves selling a put option on a stock that you wouldn’t mind owning at a lower price, while also setting aside enough cash to buy the shares at the strike price if the option is exercised. About Cash Secured Put When you sell a…
Credit spreads are a type of options trading strategy that involves selling one option and buying another option of the same underlying asset with different strike prices. The objective of this strategy is to earn a net credit while limiting the risk exposure. Credit spreads can be used in a variety of ways to manage…