A Strangle is an options trade that has undefined risk, because you sell a naked put and a naked call together. Generally a strangle is sold out-of-the-money. Generally, a one Standard Deviation Strangle is utilized. I place these often, but because of the higher risk, I usually take them off sooner (maybe at 40%-50% of max profit). That being said, the short strangle is a positive theta trade and generally a delta neutral trade (assuming both short options are equidistant from the stock price).
If you have any questions, post on this thread!
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