Interesting Topic
I use short strangles too when within a channel (We are currently in an old monthly channel).. The OTM options are sold just above and below the channel (this channel is about 700 pts wide). At the extremes of the range I cover the winning side and write more options on the other side.. In case the channel breaks I am out. Been working out very well for me from the past many months since we have been in the channel!
I use short strangles too when within a channel (We are currently in an old monthly channel).. The OTM options are sold just above and below the channel (this channel is about 700 pts wide). At the extremes of the range I cover the winning side and write more options on the other side.. In case the channel breaks I am out. Been working out very well for me from the past many months since we have been in the channel!