The
Short Strangle is an options strategy similar to the
Short Straddle, with one difference: the strikes of the sold options are different (you sell a
Call with a higher strike and a
Put with a lower strike)
The strategy will generate a profit if the stock price stays between the two strikes by the expiry date.
Compared to the
Short Straddle, the
Short Stangle has a lower profit, but higher probability of being profitable.