Short Strangle – Wider Range, Same Neutral View

A Short Strangle is a neutral strategy where an OTM Call and an OTM Put are sold, allowing a wider price range compared to a straddle. When to use: Use this strategy when the market is neutral, volatility is low, and some movement is acceptable. Historic Example: In August 2023,

was expected to remain between 3150 and 3350 for September expiry. • Sell 3350 Call @ ₹75 • Sell 3150 Put @ ₹80 Total premium received = ₹155 Profit & Risk: Max Profit = ₹155 Max Loss = Unlimited, if price moves aggressively beyond the range. Key takeaway: Short Strangle offers more breathing room, but risk remains unlimited and must be respected. 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions.