Neutral Options Strategies
The beauty of options is that you don't need to try and predict future market movement. With the right strategies, you can trade within a neutral range and still profit.
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Short Strangle

A short strangle is a multi-leg, neutral strategy with undefined-risk and limited profit potential. Short strangles have no directional bias and capitalize on a decrease in volatility and minimal movement from the underlying stock.
Short Strangle
Kirk Du Plessis
Apr 19, 2021

Short strangles could possibly be the ultimate strategy for options traders. Though it requires more capital because of the naked options on either side, theses strategies offer the highest probability of success of any trade and generally the highest P&L long term. The strategy is a combination of selling a naked call and a naked put above and below the stock price. We like to sell options at the 1 SD level (or 15% prob ITM) on either side. This gives us a high win-rate long term and maximizes our profit because we do not have to buy protection (as we would with an iron condor). Notice: we don't recommend these strategies for smaller accounts because of the margin usage and instead prefer to trade iron condor alternatives if you have a smaller account.

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Long Strangle
A long strangle is a multi-leg, risk-defined, neutral strategy with unlimited profit potential. Long strangles have no directional bias but require a large enough move in the underlying asset to exceed the break-even price on either the long call or long put option.

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