Short Strangle

### What is a Short Strangle? This is probably the most commonly traded premium-selling strategy among serious options sellers, and for good reason — you sell an OTM put and an OTM call, which gives the stock real room to move without touching either strike. You collect less premium than a straddle, but your margin of error is significantly wider. Still carries unlimited risk on both sides, same as a straddle, just with more breathing room before that risk becomes real. This is the strategy most traders graduate to once they understand premium selling but want a bit more cushion than a straddle offers.