This is the type of Strategy which Few People Knew. Lets understand Why Short Straddle is best as an Option Seller

1. Reduced volatility: By selling both a call and a put option, an option seller benefits from reduced volatility as they are not exposed to large price movements in either direction.

2. Income generation: A short straddle generates income through the sale of the options, providing a steady stream of income for the option seller.

3. Limited loss potential: The option seller’s potential losses are limited to the premium received for selling the options.

4. Time decay: Over time, the value of the options will decrease, which benefits the option seller.

5. Diversification: The short straddle can provide diversification for an option seller’s portfolio, reducing the overall risk.

6. Reduced market risk: By selling both a call and a put option, an option seller is not exposed to market risk, which can be beneficial for those looking to reduce their exposure to the stock

7. Long-term strategy: A long-term short straddle strategy is ideal for those with a long-term investment outlook, as it allows the option seller to generate income over an extended period.

8. Trading flexibility: The short straddle strategy provides the option seller with flexibility, as they can sell a new straddle as the expiration date of the existing options approaches.

To learn Options Trading Visit our courses https://innovatorsandyou.in/courses/

Ajay Kumar


Ajay Kumar is an entrepreneur who started his career early at age of 16. He started his own company at age of 21, made it a success. He has the ability as excellent stock market analyst with technical knowledge of the subject; Ajay can help you save a lot of money which you give the market after making your losses. He is the only one who has made INNOVATORS AND YOU as the best and the fastest growing institute for stock market in ASIA. Ajay Kumar is an MBA Professional with vocational experience in financial analysis. He is Expert in proceeding placements and imparting workshops. Active orator in share markets, micro/macro economics and stock analysis. A wordsmith in writing articles. Certificate holder in various modules of top financial institutes. Proficient in providing knowledge of financial modeling, financial derivatives, financial markets, ratio analysis, corporate valuation, mutual fund and much more.

Leave a Reply

Your email address will not be published. Required fields are marked *