Trading Options for Return on Capital: Strangles or Straddles?

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tastytrade’s Tom Sosnoff and Tony Battista normally use Strangles as their go-to strategy. Today, they take a look at how another short Vega trade performs: the Straddle. They see how the two trades compare in terms of ROC and the credit that you can collect!

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Comments

Faizal Hergy Veiga says:

I always had the impression that straddles were in most cases more profitable. The net credit for strangles is too small, especially for 30-45 days

Gregory Ho (slickswings) says:

This is a gamechanger!

JayeHK says:

This study is great stuff.  Previous tastytrade studies of Straddles vs Strangles have also shown higher profits for Straddles but not higher ROC.  Whereas here on the broad-market ETFs, Straddles win on ROC too.  Would be interested to know if TLT performed differently to SPY and IWM.

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