Debt Ceiling Debacle Sets up Well for a Strangle
A strangle is an options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset. This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. There will probably be no deal tonight or Friday on the debt ceiling negotiations. If we don’t see a bill to extend the … Read more