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

Hey everyone, Kirk here again from optionalpha.com and welcome back to the daily call. Today, I’m going to go over my top four reasons to sell straddles and strangles. Straddles and strangles for those of you who are not familiar with them are pure naked option selling strategies. Straddles are where you sell the same strike price on both sides. You sell the 100 call and the 100 put. With a strangle, you’d be moving further out from where the stock is trading. If the stock is trading at $100, you might sell the 105 call and the 95 put. But in either case, they’re both naked option selling strategies where you have undefined risk and you're not buying any strategies or creating any spreads. Now, to tell you honestly, these are two of my favorite strategies and we do very synthetic versions of these a lot. We trade a lot of iron butterflies, iron condors, but we also do a lot of straddles and strangles. I think it’ll be personally interesting. I'm interested to see what I do personally with myself. It’s like I’