Inverted Strangles

Good video by Dr Jim that introduces inverted strangles.

Key points:

• First move untested side to same strike as tested strike -> becomes a straddle
• Price continues to move against us. Move option leg that we moved previously to where price is currently (ATM).
• Roll inverted strangle out multiple times to collect as much premium to offset max loss which is the width of the inverted strangle.

Watch full video.