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. 

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992