Thanks to the combination of a short put and a short call, this strategy requires a margin account ... and it also sports a fairly daunting risk profile. Here's a closer look at a short strangle ...
A short strangle is when you sell an OTM (out-of-the ... At the same time, its gross margin is high at nearly 85% and is expected to stay that high over the next four years. Its balance sheet ...
That type of action will be good for an option strategy such as a short strangle. A short strangle involves selling an out-of-the-money put and an out-of-the-money call with the same strike price ...