Selling a call and selling a put with the same expiration, but where the call strike price is above the put strike price is known as the short strangle strategy. Typically both options are out-of-the-money when the strategy is initiated.
The investor is looking for a steady stock price during the life of the options.
This strategy tends to succeed if the stock price and volatility remain steady during the life of the options.
Earn income from selling premium.
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