Selling naked puts (being short puts all by themselves) is a risky trade reserved for experienced traders. While it can leave you open to significant downside risk, it can also be used as an effective hedge against other short positions. … read more Options Basics—Selling Naked Puts→
A strangle option strategy involves buying (or selling) an out-of-the-money call, and buying (or selling) an out-of-the-money put with the same expiration. A strangle buyer expects the price of the stock to move significantly outside of the range of the … read more Options Basics—Strangles→
An iron condor is a trading strategy that uses both a put spread and a call spread. It is similar to a strangle except that it limits profit/loss potential to the difference between the strike prices used. It’s a good … read more Options Basics—Iron Condor→
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