Episode 13 of 'Saxo Options Talk': the versatility of strangles: long and short strategies
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.
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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
- 20 Mar 2024: Options Talk - Episode 12 - Defined vs undefined risk strategies
- 13 Mar 2024: Options Talk - Episode 11 - Stretched Synthetic Stock using Options
- 6 Mar 2024: Options Talk - Episode 10 - Synthetic Stock
- 28 Feb 2024: Options Talk - Episode 09 - Volatility
- 21 Feb 2024: Options Talk - Episode 08 - Rolling
- 14 Feb 2024: Options Talk - Episode 07 - Put Spreads
- 7 Feb 2024: Options Talk - Episode 06 - Delta
- 31 Jan 2024: Options Talk - Episode 05 - Short Call Spreads
- 24 Jan 2024: Options Talk - Episode 04 - Long Call Spreads
- 17 Jan 2024: Options Talk - Episode 03 - Long Calls
- 10 Jan 2024: Options Talk - Introducing -Options Talk by Koen and Peter- -Your Weekly Podcast on Options Trading
Previous "Volatility reports":
- Volatility report - week 13 - 25 mar 24 -- 29 mar 24
- Volatility report - week 12 - 18 mar 24 -- 22 mar 24
- Volatility report - week 11 - 11 mar 24 -- 15 mar 24
- Volatility report - week 10 - 4 mar 24 -- 8 mar 24
- Volatility report - week 9 - 26 feb 24 -- 1 mar 24
- Volatility report - week 8 - 19 feb 24 -- 23 feb 24
- Volatility report - week 7 - 12 feb 24 -- 16 feb 24
- Volatility report - week 6 - 5 feb 24 -- 9 feb 24
- Volatility report - week 5 - 29 jan 24 -- 2 feb 24
- Volatility report - week 4 - 22 jan 24 -- 26 jan 24
- Volatility report - week 3 - 15 jan 24 -- 19 jan 24
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- 19 Feb 2024: Investing with options - Securing your tech stock gains with simple hedging strategies - 2of2
- 19 Feb 2024: Investing with options - Securing your tech stock gains with simple hedging strategies - 1of2
- 2 Feb 2024: Investing with options - Microsoft - buying stock or options - a comparison
- 25 Jan 2024: Investing with FX options - Hedging USDJPY currency risk
- 8 Jan 2024: Investing with FX options - Hedging currency risk
- 30 Nov 2023: Investing with options - striking gold (GLD)
- 23 Nov 2023: Investing with options - hedging the Nasdaq 100
- 17 Nov 2023: Investing with options - Nvidia - pre-earnings
- 10 Nov 2023: Investing with options - AdYen - post investor day
- 31 Oct 2023: Investing with options - Novo Nordisk earnings
- 31 Oct 2023: Investing with options - Apple earnings
- 24 Oct 2023: Investing with options - Amazon earnings
- 24 Oct 2023: Investing with options - Meta Platforms earnings
- 23 Oct 2023: Investing with options - Alphabet earnings
- 20 Oct 2023: Investing with options - Microsoft earnings
- 18 Oct 2023: Investing with options - Tesla earnings
- 17 Oct 2023: Investing with options - long bonds - TLT
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- 12 Feb 2024: What are your FX options - USDJPY - after 148 breakout
- 24 Jan 2024: What are your options - Tesla Q4 Earnings
- 18 Jan 2024: What are your FX options - EURUSD elevated volatility
- 12 Jan 2024: What are your options - Coinbase after BTC ETF approval
- 21 Nov 2023: What are your options - Nvidia earnings
- 08 Nov 2023: What are your options - Disney earnings
- 26 Oct 2023: What are your options - Nasdaq Selling Premium
- 29 Aug 2023: What are your options - Salesforce earnings
- 25 Aug 2023: What are your options - the Qs - Nasdaq etf
- 23 Aug 2023: What are your options - Nvidia - earnings - market reactions
- 21 Aug 2023: What are your options - swing trading semi-conductors - stocks vs options
- 18 Aug 2023: What are your options - using TLT as an inverse proxy for the 10 year yield
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