SHORT STRANGLE: The short strangle is an unlimited risk options strategy that consists of a short put and a short call. It can be directionally skewed bearish/bullish or it can be neutral and operates on the assumption that price of the underlying will remain in a range for the duration of the trade. Upon expiry, if the price of the underlying remains between...
With the IVR in TLT remaining relatively high (82; 6-month Dough), I'll be looking at TLT for a play this week (Aug 28 expiry). The current 1 SD lines are at about 123 on the call side; 109.50 on the put side, and it's ripe for a potentially productive short strangle (109.5/123 short strangle; Aug 28 expiry; 1.44 credit; BE's at 108.06 and 124.44). The natural...
In preparation for the upcoming earnings report, Tesla has some clear probabilities in front of it, from my perspective. If they report a great number and forecast, it will be $250 in a heart-beat. If they stumble at all in any way, it will be $150 in a heart-beat. So I view owning both puts and calls here as the best strategy. Buy the $210 calls and Buy the...