U.S. Election 2024: Bitcoin And S&P 500 Options Show Divergent Trends
Selling straddles and strangles means selling both call and put options in a bet that the underlying asset’s price will remain largely rangebound. The seller collects the premium, which is retained if the price stays in a narrow range till expiry. However, it’s a risky strategy that is better suited to savvy traders with ample capital supply because if the volatility spikes, losses can quickly mount, far exceeding the premium received.