The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we are going to answer an email that I got from a user which is basically, “What are the advantages of trading strangles versus iron condors?” The email from one of our members said, “My Thinkorswim platform doesn't allow me to write straddles and strangles because of the unlimited loss risk.” They get a message that says it's illegal to write these shares. They have an illegal negative one shares. However, I can do an iron condor because the risk is limited. When I see the iron condor diagram, it is the same as a strangle except for the defined risk. Again, they basically are asking what are the advantages of using a straddle or a strangle over an iron condor. The clear advantage of using straddles and strangles versus iron condors is a couple of different things. I don't think it's not just one thing. There's a couple of clear advantages to using them. The first is that in most cases, you end up generating mo