LD Lossdog Research
strategy

short strangle

12 matching records.

Trade idea

silver short strangle

The current short strangle position is not optimal due to the high risk-to-reward ratio. By re-centering the trade in April, the trader can capture additional premium and reduce the risk of a large adverse move. This strategy is effective when volatility remains high, as it allows for capturing the premium while reducing the risk of a large adverse move. The break-even point is around 92, and the trader needs to make back the lost money on the trade.

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Strategyshort strangle
Assetcommodity
ExpirationApril
Time horizonshort-term
Entry / triggervolatility remains high
Target / exitcapture additional premium
Invalidation / stopif silver does not rally
SpeakerScott Sheridan
Structure / legs
  • 75
  • 105
Risks
  • volatility may decrease
  • silver may not rally
  • transaction costs may eat into profits
bullishcommoditybullishshort strangleshort-termsilver
high confidenceVerify in video at 37:36 ↗
Trade idea

HOOD short strangle

The speaker has a short strangle in HOOD, which they believe is positioned around the expected price movement. They have been bullish on HOOD throughout the year and have been buying it whenever it dips into the 70s, which has worked for them. The trade idea is based on the expectation that the price will move within the expected range, allowing for profit from the strangle.

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Strategyshort strangle
Assetstock
Time horizonShort-term
Entry / triggerPrice movement within expected range
Target / exitProfit from price decline
Invalidation / stopPrice moves beyond expected range
SpeakerUnknown
Risks
  • Price moves beyond expected range
  • Market volatility
  • Liquidity issues
shortEquityshortshort strangleHOODshort-term
medium confidenceVerify in video at 1:15:03 ↗
Trade idea

Trade idea short strangle

high volatility in Meta (Meta) is a good trade opportunity

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Strategyshort strangle
Entry / triggerhigh volatility
Speakerspeaker
short strangle
high confidenceVerify in video at 25:59 ↗
Trade idea

PLTR strangle

The speaker suggests widening the strike range of a strangle position in PLTR from 130-150 to 100-180 to capture more call skew and improve comfort during volatility expansion. This adjustment is based on the observation that the current position is underperforming due to the puts moving in the money. The strategy assumes that volatility will continue to expand, which is supported by recent market conditions. The risk is that volatility may contract, leading to a loss.

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Strategystrangle
Assetequity
ExpirationAugust
Time horizonshort-term
Entry / triggervolatility expansion
Target / exit100-180 strike range
Invalidation / stopvolatility contraction
SpeakerTony
Structure / legs
  • puts
  • calls
Risks
  • volatility contraction
  • premium costs
short strangleequityshort stranglestranglePLTRshort-term
high confidenceVerify in video at 23:33 ↗
Trade idea

SPX strangle

The strategy involves selling a zero-day strangle and buying long wings at the 30-day expected move. Adjustments are only necessary on days with significant price movements (over 1/2%). The speaker emphasizes that the difference in results between staying in the zeros or adjusting is minimal, and the strategy is based on extensive backtesting over 2 years.

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Strategystrangle
Assetindex
Expirationzero-day
Time horizonshort-term
Entry / trigger30-day expected move levels
Target / exitprofit from volatility compression
Invalidation / stopsignificant price movements (over 1/2%)
SpeakerRaphael
Structure / legs
  • sell zero-day strangle
  • buy long wings at 30-day expected move
Risks
  • Significant price movements may require adjustments
  • Volatility may not compress as expected
  • Market conditions may change
short strangleindexshort stranglestrangleSPXshort-term
high confidenceVerify in video at 23:11 ↗
Trade idea

ZB sell September 104 put and 112 call

rangebound

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Strategysell September 104 put and 112 call
Assetfutures
ExpirationSeptember
Time horizonimmediate
Entry / triggertoday
Target / exit41 ticks ($640)
Invalidation / stopoutside the expected move
SpeakerTom
Structure / legs
  • September 104 put
  • September 112 call
short stranglefuturesshort strangleZBimmediate
high confidenceVerify in video at 42:56 ↗
Trade idea

Trade idea short strangle

Close the position quickly to secure profit

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Strategyshort strangle
Time horizon5 days
Entry / triggerput it on with a 50% max profit within 5 days
Target / exit5 days
short strangle
high confidenceVerify in video at 55:35 ↗
Trade idea

NFLX short strangle

The speaker suggests adjusting a short strangle position to be outside or at the expected move to increase the statistical chance of success. They emphasize that if the position would not be opened today with the current information, it should be adjusted or covered. The strategy involves re-centering the strikes around the expected move, either by moving them outside or at the expected move, and skewing the position slightly for delta exposure.

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Strategyshort strangle
Assetequity
ExpirationMay
Time horizonshort-term (earnings season)
Entry / triggerbefore earnings announcement
Target / exittwo times the expected move
Invalidation / stopif the stock moves within the expected move range
Speakerunknown
Structure / legs
  • put
  • call
Risks
  • Volatility spikes
  • Unexpected earnings results
  • Market gaps
short strangleequityshort strangleNFLX
high confidenceVerify in video at 39:13 ↗
Trade idea

Trade idea short strangle

short strangle is preferred over iron condor due to higher probability of profit and fewer contracts

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Strategyshort strangle
Time horizonlong period of time
Entry / triggervery far out of money
SpeakerHans
Risks
  • black swan events
short strangle
high confidenceVerify in video at 47:03 ↗
Trade idea

CATER Strangle

The speaker suggests using a strangle on Caterpillar stock, where the trader sells both a put and a call option. The strategy is based on the expectation that the stock will move significantly in one direction, with the trader willing to accept a small loss if the stock moves up but can profit from a larger downward move. The potential loss is limited, while the profit potential is significant if the stock moves down. The trader is advised to sell strangles to capitalize on the potential downward movement.

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StrategyStrangle
AssetEquity
Time horizonShort-term
Entry / triggerStock is expected to move significantly in one direction
Target / exitProfit from a significant downward move
Invalidation / stopLoss if the stock moves significantly upward
SpeakerSpeaker
Structure / legs
  • Short Put
  • Short Call
Risks
  • Loss if the stock moves significantly upward
  • Limited profit potential if the stock moves in the expected direction
Short Strangleequityshort stranglestrangleshort-term
high confidenceVerify in video at 1:14:22 ↗
Trade idea

NFLX short strangle

The speaker proposes a short strangle in Netflix with a conservative strike range, based on the expected price movement of $6 outside the range on both sides. The strategy is described as low risk and low reward, suitable for traders looking to participate in potential price movements without significant exposure. The speaker emphasizes the importance of the IVR and the probability of success, suggesting that the trade is appropriate for those seeking to enter a strangle in Netflix with a low risk profile.

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Strategyshort strangle
Assetequity
ExpirationJune
Time horizonShort-term
Entry / triggerStock price within a narrow range
Target / exit75% probability of success (P50)
Invalidation / stopSignificant price movement beyond expected range
SpeakerSpeaker
Structure / legs
  • short put at 82.98
  • short call at 88.78
Risks
  • Limited reward potential
  • Risk of significant price movement beyond expected range
strangleequityshort stranglestrangleNFLXshort-term
high confidenceVerify in video at 24:36 ↗
Q&A

When does a margin call become likely in an underlying as an underlying approaches the call or put strike on a short strangle?

A margin call becomes likely if the position is too large relative to the account size, typically if using 3 to 5% of buying power. It depends on the stock's position relative to the strike price and the delta of the options. If the stock is at the money, the delta is 50%, and the position should not be in a call unless it has moved significantly in one direction. It's crucial to check buying power allocation to ensure positions are not too large.

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Actionable takeawayMonitor position size relative to buying power and ensure it's within recommended allocation (3-5%) to avoid margin calls. Check delta and strike price proximity to assess risk.
short strangleOptionsrisk management
high confidenceVerify in video at 56:18 ↗