This video examines bullish strangles as an effective options trading strategy, contrasting its performance and risk against alternatives like naked puts. Learn how bullish strangles can offer improved returns and downside protection, even with potential for higher volatility. The discussion emphasizes that this trading strategy is particularly well-suited for consistent market uptrends, providing solid returns through robust risk management.
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CHAPTERS:
00:00 Should You Trade a Bullish Strangle?
00:44 The Study: 20 Years of SPY 45-Day Strangles
01:30 30 Delta Put vs 16 Delta Call: The Bullish Setup
02:35 Same Success Rate. Nearly Twice the Return on Capital.
04:00 Put Side Break Even Is Closer: The Trade-Off
05:30 Bearish Strangle Flipped: The Results Are...