15.3 Lessons learnt: strangles
- Combining strangles with shares can help you lower your risk and obliges you as an investor to think in a 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.
- You know your maximum profit on forehand.
- Ability to work out a strategy before opening a position.