The strong strangle strategy is an options trading method where an investor buys both an out-of-the-money (OTM) call option and an OTM put option on the same asset, with the same expiration date. This strategy is designed to capitalize on significant price movements in either direction. The strategy is called “strong” when the options are positioned far from the current price. This setup lowers the cost of the strategy while still allowing for potential profits if the asset undergoes considerable volatility.
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