Dec 10, 2014
Advisors Option 25: Mystery of the Covered Strangle
Options 101: Covered Strangles/Covered Combos
What is it? Long stock, covered call, short put. Why do it? To collect more income than a standard call or short put. Why not do it? Increased margin requirement, you will increase your stock position to the downside.
Note: Call and put should only be sold on strikes where you are comfortable buying/selling the stock.
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