STOCK TERMS OF THE DAY:
STOCK TERMS OF THE DAY
STRANGLE
A strangle is an options strategy where the investor holds a position in both a call and put with different strike prices, but with the same expiration date and underlying asset.
This option strategy is profitable only if the underlying asset has a large price move This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. This is a good way to play earnings especially in a volatile market like this.
A strangle is an options strategy where the investor holds a position in both a call and put with different strike prices, but with the same expiration date and underlying asset.
This option strategy is profitable only if the underlying asset has a large price move This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. This is a good way to play earnings especially in a volatile market like this.
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