Sell near-dated strangle + buy farther-dated wider strangle. Income with defined wings.
Sell a near-dated strangle while buying a farther-dated, wider strangle as protection. The near options decay faster than the far ones — you harvest that difference while the wings cap surprise moves.
Range-bound income when you also want positive exposure to a volatility rise — the long back-month legs gain value when implied volatility wakes up.
The payoff depends on TWO expirations and the volatility surface between them — there is no single expiration curve. Manage at the front expiration; the maximum loss is bounded but path-dependent.
New to options? Start with the free curriculum — or see which strategy fits your outlook.
Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.