Dinesh Boopathi

Short Strangle Strategy

What is the Short Strangle Strategy? In the context of options trading as explained above, a short strangle strategy is a neutral strategy and allows an investor to benefit from the status quo in a financial market. A short strangle position is held when an investor simultaneously sells a slightly out-of-the-money call option as well as an out-of-the-money put option of the same underlying asset with the same expiration date. However, the strike prices for both are different.