Short Strangle

A short strangle is a two-leg undefined-risk structure: sell an OTM put and sell an OTM call. It collects more premium than an iron condor but has undefined loss. ACondor restricts strangles to margin accounts and uses defined-risk variants in IRAs and cash accounts. SPY, QQQ, IWM, and XLF are restricted to defined-risk-only regardless of account type, because a naked index ETF position represents very large correlated notional exposure.

Financial Information Disclaimer

This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.