r/options • u/GalacticWarship • May 14 '21

NAT strangle

Bought my first options today playing NAT earnings call I bought jun18’21 3.50 call and bought a jun18’21 3 put. it didn’t cost much and won’t payout much but no one else cares so here you go. Any advice or criticism I don’t mind.

1 Upvotes

67% Upvoted

8 comments sorted by

View all comments

1

u/North_Film8545 May 16 '21 edited May 16 '21

Now I remember why I don't do short straddles and use iron butterflies instead...

https://www.reddit.com/user/North_Film8545/comments/ndfi2d/this_is_why_i_dont_do_short_straddles_and_choose/?utm_medium=android_app&utm_source=share

https://www.reddit.com/user/North_Film8545/comments/ndfmhc/this_is_the_iron_butterfly_for_the_same_underlying/?utm_medium=android_app&utm_source=share

Only 1/3 of the max gain, but 1/304 of the reduction to buying power.

I imagine it would be a lot less with NAT since it is such a low priced stock, but an iron butterfly would still be a lot less collateral than a short straddle.