Sold a put at $175and call for Lulu at $240 with same expiration date (Strangle Option) as i expect the price to be within this range over the next 2 months.
Why did i do this?
Premium income: I collect premiums from both the put and the call.
Profit range: As long as LuLu stays between $175 and $240 by expiration, both options expire worthless, and I keep the entire premium.
Lower margin vs. separate naked positions: Less margin for strangle than for selling a naked put and a naked call individually, since the risks partially offset.
If price drops below $175, I can roll or be assigned If margin allows
If price rockets above $240, i can choose to roll or let it be called away (i do own few lots)
hahaha I am very clever hor [Miser]
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Sell Open | 1.02 2Lot(s) | -- Closed |
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