28 min listen
73: We Examined 8 Short Strangles For Returns & Margin Requirements
73: We Examined 8 Short Strangles For Returns & Margin Requirements
ratings:
Length:
20 minutes
Released:
Dec 5, 2016
Format:
Podcast episode
Description
Show notes: http://optionalpha.com/show73 What does great pricing look like when trading short strangles? Is it collecting a certain raw dollar amount? Or a certain percentage of the stock price? Without a doubt, these are tough questions to answer for newbie options traders and hard to answer without some context. And while comparing pricing on different risk defined option trades, like credit spreads and iron condors, is pretty straight-forward and easy, it can become difficult to recognize great pricing with undefined risk option strategies like short strangles. In today's podcast, I examined eight different short strangles across a mix of ETFs and individual stocks. I recorded everything from the current stock price and implied volatility ranking to the premium collected and the margin required for each one lot strangle. My goal? Discover which option trades had the best pricing on a relative basis given that every short strangle we analyzed had the same 70% probability of success.
Released:
Dec 5, 2016
Format:
Podcast episode
Titles in the series (100)
OAP 026 : Wide Bid/Ask Spreads & Slippage Are Costing You $3,840 Each Year: You’ve often heard us talk about the important of trading liquid options until you are blue in the face right? In this session of The Option Alpha Podcast we’ll put a real dollar figure to this concept and show just how much “slippage” is... by The Option Alpha Podcast