Conceptual view of how to trade non directional or semi directionally using strangles and capped strangles, also known as Jade Lizard option spreads.

Non directional option trades attempt to benefit from sideways markets or markets where options are are pricing more implied movement than is realized in the underlying asset.

Combing a vertical on top with a cash secured put on bottom, creates a range trade. Selling on both sides for credits helps either reduce the cost of buying shares or creates income while the stock trades sideways without direction.

DIASPXQQQVIXPLTRSNAP
Beyond Technical AnalysisFundamental AnalysisnondirectionalstranglestranglesTrend Analysis
optionfarmers

כתב ויתור