Episode 13 of 'Saxo Options Talk': the versatility of strangles: long and short strategies Episode 13 of 'Saxo Options Talk': the versatility of strangles: long and short strategies Episode 13 of 'Saxo Options Talk': the versatility of strangles: long and short strategies

Episode 13 of 'Saxo Options Talk': the versatility of strangles: long and short strategies

Options 10 minutes to read
Koen Hoorelbeke

Options Strategist

Summary:  'Saxo Options Talk' Episode 13 delves into strangles, a flexible option strategy that caters to various market conditions. Koen Hoorelbeke and Peter Siks skillfully unpack long and short strangle strategies, providing insights for traders and investors alike to navigate markets rife with uncertainty.


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks.

Introducing Episode 13 - The Versatility of Strangles: Long and Short Strategies

The latest episode of 'Saxo Options Talk' titled "The Versatility of Strangles: Long and Short Strategies" brings to the trading table a thorough exploration of strangles. This powerful episode arms listeners with the know-how to execute both long and short strangles to capitalize on market volatility.

Strategizing with Strangles

  • Understanding Strangles: Gain a clear understanding of what strangles are and how they can be structured as neutral or directional strategies based on market forecasts.
  • Delta Neutrality and Strategy: Explore why strangles often aim for delta neutrality, balancing the position to mitigate immediate risk from price movements.

Operational Tactics

  • Setting Up for Success: Learn the intricacies of setting up a strangle, including the selection of call and put strikes using delta and technical analysis as guiding principles.
  • Optimizing Expiry and Profitability: Discuss the pivotal role of time to expiry (DTE) in strategy management and methods to lock in profits from a strangle position.

Managing Risks and Capital

  • Balancing Margin and Trade Size: Examine the critical aspect of margin usage in strangles and the vital importance of position sizing in risk management.
  • Adjustments and Loss Mitigation: Navigate through strategies to adjust strangles in response to market movements and understand when it might be necessary to recenter or accept losses.

Advanced Application and Adaptation

  • Covering Strangles with Holdings: Analyze the added layer of strategy when combining strangles with holding the underlying assets and how this could benefit a broader investment strategy.
  • Exploring Strangle Variants: Get a brief introduction to variations on the classic strangle setup, like iron condors and synthetic strangles, offering a preview into more sophisticated options tactics.

Why Episode 13 is a Must-Listen

Whether you're contemplating how to play an uncertain market or looking for hedging strategies, Episode 13 of 'Saxo Options Talk' is a treasure trove of strategic guidance.

Subscribe and stay ahead

Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.

Join the discussion

After tuning in, join me on my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.

Your questions, our answers

We're eager to hear from you! Send your options-related questions to optionquestions@saxobank.com. Selected questions will be addressed in future episodes, providing customized advice and insights.

Conclusion:

In "The Versatility of Strangles: Long and Short Strategies," Episode 13 of 'Saxo Options Talk,' Koen and Peter illuminate the paths traders and investors can take in volatile and unpredictable markets. With their expert guidance, you're set to deploy strangle strategies with confidence, whether aiming for aggressive gains or conservative protection.


For continuous insights and updates on market/options strategies, interact with me/follow my social media account on Threads.


Previous episodes of the "Saxo Options Talk" podcast

Previous "Volatility reports": 

Previous "Investing with options" articles: 

Previous "What are your options" articles: 

Related articles:


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website. 
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