Learn With ETMarkets: Options Demystified 505 – Strangle and Short-strangles
Understanding Tara’s predicament, Maya replied, “Here’s a trick. We can transform those calls and puts into debit spreads by selling some OTM options. This move turns the Straddle into an Iron Fly, just like we discussed in our last chat. But here’s the catch – the potential profit is capped this way.”
