What is short strangle strategy and how to adjust the positions?
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What is short strangle strategy and how to adjust the positions?
Short Strangle strategy is one of the most used strategies by traders. Short Strangle strategy works best when the market is range-bound.
What is Short Strangle Strategy?
Selling slightly Out of the Money Call & Put Options of the same quantity and the same expiry is called Short Strangle Strategy.
Margin Required for Short Strangle Strategy:
If you sell nakedly, the margin required for Short Strangle for 1 lot of Bank Nifty Options is approximately Rs. 1,60,000/-
How to do Adjustments?
There is not much need for adjustments when the market is moving in range-bound. If the market moves in one direction, then you should do adjustments to avoid losses.