Maximum Option Returns: Convert Strangles to Straddles

Strangles are my favourite Option strategy. This is how I manage them when the don't stay in range. It's pretty simple. I convert from a short strangle to a short straddle by rolling up the untested side. Today I'll show you a trade from start to finish and how I turned a losing trade into a big winner.

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▬ CONTENTS ▬▬▬▬▬▬▬▬▬▬

0:00 Intro
1:07 Short Strangle Defined
2:48 Theta Decay: OTM vs ATM
3:53 Actual Trade Setup: Strangle
6:54 First Trade Adjustment
9:03 Convert to Straddle
10:00 Straddle Defined
11:39 Strangle vs Straddle
13:54 Important Considerations
18:02 Death Cross - Simple Moving Averages
19:54 Final Trading Profits
21:35 Entire Trade Overview
24:24 Social Media Links

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My primary investment strategy is long term high yield dividend investing, index funds and reducing risk and exposure using options. I have been actively trading the stock market for over 25 years and have built most of my wealth by reinvesting my dividends and following my 14 Personal Rules of investing. I actively trade options on both the American and Canadian Stock exchanges using options strategies and buying and holding high yield dividend paying stocks.

I generate monthly income in two ways. Averaging more than an annual 7% return by collecting dividends on high yield dividend stocks that I hold. The second income stream comes from the selling of option premium and taking advantage of theta decay. I love trading strangles, Iron condors and diagonal spread for maximizing returns. Delta neutral strategies allows me to make money in both bull and bear markets and limits my risk. Both of these strategies are suitable for passive income and create a stable predictable safe passive monthly income.

Want to learn how to trade stocks and make more money? This channel is dedicated to increasing investment returns and building wealth by passively trading in the stock market. If you’re tired of poor performance then make sure you subscribe to Drawbridge Finance https://www.youtube.com/c/Drawbridgef... I produce weekly videos for the beginner trader and use simple explanations to learn how I buy and sell stocks for profit.

Let’s Get Rich Together
Levi Woods

Disclaimer: I am not a financial planner and am not offering investment advice. This is an opinion channel only and should not be taken as any form of financial advice. I receive a small commission from the purchase of any item from using the links listed above. There are financial risks involved in taking on any monetary transaction that I discuss in my videos.

#options #stockmarket #LetsGetRichTogether