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Jim Schultz on Short Strangles vs Iron Condors, and When to Use Each.

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Breakdown

0:00lesson

Neutral premium selling strategies

  • Sell premium on both market sides
  • Target stock/index range staying
  • Adjustments needed for range breaks
  • Unlimited risk on strangles
  • Defined risk via iron condors
1:43lesson

Short strangle mechanics

  • Sell call at 1 std dev above
  • Sell put at 1 std dev below
  • Adjustments for directional moves
  • Unfiltered theta/vega exposure
  • Undefined risk on both sides
3:22lesson

Iron condor vs short strangle

  • Iron condors cap risk with wings
  • Less theta/vega exposure
  • Beginner-friendly defined risk
  • Requires more capital
  • Set it and forget it
4:48GDXJ· ticker

GDXJ strangle setup

  • Sell 83 put (15-17 delta)
  • Sell 115 call (21-24 delta)
  • Net delta -7
  • Credit collected $4
  • Buying power $1k
6:38GDXJ· ticker

GDXJ iron condor setup

  • Buy 78 put (capped downside)
  • Buy 121 call (capped upside)
  • Credit collected $1.50
  • Theta reduced to $2/day
  • Defined risk profile
8:28lesson

Strategy selection criteria

  • Beginners use iron condors
  • Experienced use short strangles
  • Smaller accounts prefer condors
  • More capital allows strangles
  • Skill level impacts complexity

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