10.4 Lessons learnt: Strangles
- Combining strangles with shares can help you to lower your risk and obliges you as an investor to think in strategy!
- Selling/ buying calls and puts together is called a strangle.
- By adding short/sold strangles to your share position you can lower your initial purchase price resulting in: Higher profit, Maximum profit known on forehand, Ability to work out your strategy before opening the position.