*MEGA THREAD ON SHORT STRANGLES* 🧵

This thread is a step-by-step guide on what I have learned trading Short Strangles.

Collaborated with @niki_poojary

Here's what you'll learn in this thread:

1. What is a Strangle
2. Benefits and Drawbacks
3. How to extract more profit through strangles?
4. How to adjust them when in loss?
5. Videos on Positional Strangles
6. Vix Correlation

Let's dive in ↓

1/ What is a Strangle?

Selling OTM CE & OTM PE of the same instrument you are trading.

Look at the picture below for an example of a short strangle in current weekly options.

2/ Why do traders like short strangles?

The highest probability of profit is there in a strangle.

By mastering this technique you can earn a consistent weekly income.

Most of the times we can predict the weekly range.

So sell options outside this range to profit consistently.

3/ Benefits of Short Strangles

Higher probability - More than 80% winning chance

Can turn directional too - If your SL hits on one side can sell on the opposite side and make it directional.

The biggest range of profit you'll get in options of any expiry.