Advanced Options Strategies

Overview

Advanced strategies use multiple legs to express a specific view. A straddle and a strangle profit from a big move in either direction. An iron condor profits when the market stays inside a range.

Key takeaways

• A long straddle buys a call and a put at the same strike to profit from a big move either way.
• A strangle is a cheaper straddle that uses out-of-the-money strikes.
• An iron condor sells a range and profits if price stays inside it.
• Multi-leg strategies trade lower cost for capped, defined outcomes.

For education only. Not investment advice.