Sold a put at $165 and call for Nvda at $225 with same expiration date (Strangle Option) as i expect the price to be within this range over the next 1 month.
Why did i do this?
Premium income: I collect premiums from both the put and the call.
Profit range: As long as Nvda stays between $165 and $225 on expiration date, 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 $165, 1 am glad to be assigned
If price rockets above $225, i can choose to roll or let my Nvda be called away (i do own few lots of Nvda)
[Cool]
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