Short Straddle vs Short Strangle | Options Trading Explained in 45 Seconds
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Short Straddle vs Short Strangle | Options Trading Explained in 45 Seconds
Straddle or Strangle — which short options strategy should you use? Both profit when the stock doesn’t move much, but the difference comes down to risk and reward. A short straddle sells a call and a put at the same strike, earning a higher premium but carrying higher risk if the stock moves big. A short strangle sells a call above and a ...
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