How Options Strangles Work Bryan used what's known as an "options strangle." An options strangle is an investment strategy that involves buying a call option and a put option with the same expiration date but different strike prices. The purpose of a strangle is to profit from a significant price movement in the underlying asset, regardless of whether the price goes up or down. By purchasing a call option (an option to buy) and a put option (an option to sell), the investor is essentially betting on a large price swing in either direction. If the price moves significantly, the value of one of the options will increase, while the value of the other will decrease. The goal is to make more money from the increasing value of one option than you lose from the decreasing value of the other. Options strangles are often used when investors expect high volatility or uncertainty in the market but are unsure which direction the price of an asset will move. This strategy provides the opportunity to profit from a significant move while limiting potential losses if the price remains relatively stable. When prices move, you can make a ton of money if you correctly predict the direction. But what if you don't know the direction? That's when a strangle can save the day and mint you money. YOUR ACTION PLAN Don't miss the next opportunity to make thousands of dollars overnight in The War Room. Right now we're guaranteeing members will receive 252 winning trades in their first 12 months. Sign up for The War Room today! |
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