how can a strangle trading strategy be created? group of answer choices buy one call and one put with different strike prices and same expiration date buy two calls and one put with the same strike price and expiration date buy one call and two puts with the same strike price and expiration date buy one call and one put with the same strike price and same expiration date

Respuesta :

Strangle can be created by Buy one call and one put with different strike prices and same expiration date, which means that option A should be the right answer.

A strangle generally focuses on the investors who think an asset will move dramatically but are unsure of the directions. Strangle trading can be profitable both in long term and short term investment, but one must carefully devise back up plans in case of lower profits or low volatile period. Strangle is basically an option in which investors hold a position in a call with a high price rate and puts an option with a low price rate. The strangle is an improvisation over the straddle and gives good returns.

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