TheStrangle - what is it and how to make money with it ?
Use of this website is for informational & entertainment purposes ONLY*
Do you know where Tesla or Apple will be tomorrow?
No? Never mind, neither do we.
But we do know there are a lot of stocks that are moving. And when stocks move, the options on those stocks go up. When a stock goes up, the calls start to come in. If the stock falls, the puts go up.
With options you can profit from the movement of a stock. But if you don't know in which direction a stock is moving, what do calls or puts help you? Well, if you buy a Strangle -> you do not care which way a stock goes as long as it moves and the more it moves the better it is. With a strangle, we buy both calls and puts on the same stock and both inmost case out of the money. This is exactly the principle of TheStrangle. We look for stocks that have always been moving strongly, such as Apple (AAPL) or Starbucks (SBUX), or we look for stocks that have been moving strongly and have gone to sleep for a while, such as Beyonfd meat (BYND) some months . Because these stocks, when they wake up, often make big jumps.
The main thing is that the underlying stock moves. Whether the reason is surprisingly good or bad quarterly figures, or the sudden departure of the CEO or even a Chapter 11 or a takeover bid - we don't care. The main thing is that the stock moves. And that is the great thing about TheStrangle's approach. When the stock moves strongly, one side of our commitment usually makes a profit, often so much that it makes up for the total loss of the other side. And assuming the Call on stock xyz is 200% in profit and we sell the Call, we still have the currently worthless put, but even that can still earn a few cents or even dollars in the future. Sometimes we even make money on both sides.
Relaxed investing with TheStrangle
Options offer traders a variety of excellent opportunities, and very high returns are possible with a very low capital investment. The biggest advantage is that with suitable strategies you no longer need to bother with determining the direction of the market.
There are many problems with buying a stock position: the price has to rise for the position to make a profit, if the price falls against your expectations, you incur losses. This means that you are forced to predict the future direction of the price. Who hasn't experienced it himself, as soon as you have a position in your portfolio, the price falls. Good advice is expensive now, do you sell with small losses or do you wait and see? Most traders unfortunately decide to wait and see and hope for a recovery. This often happens before the price collapses completely... During this time, many decisions have to be made, what is right and what is wrong, usually turns out only afterwards. Almost always this decision has to be paid dearly.
With a Strangle you can be much more relaxed about the stock market. It is completely unimportant whether the share price rises or falls! Depending on the direction, the price of the call option or the put option rises, so the overall position always wins if the price moves. The stronger the movement, the higher the profit of the strangle. We take care to only short-list stocks that have moved in strong trends in the past.
How much money do I need?
As always in Finance - the answer is "It depends" As we usually invest in around 15 stranges at the same time and as we investext 1.000 $ on each side of the strangle, this would sum up to around 30.000 $. You could start with much less, but that might have negative side effects.
Could you invest less than 2.000 $ into a strangle? Yes in most cases you could, BUT ->We try to pick "cheap" options but sometime a Call or Put might cost up 10 $. In that case you have to invest 1.000 $ in this side of the strangle as options are only traded in 100-pieces. That is why we always lay a 2.000 $ as basis in our trades.
Could you invest in less than the 15 strangles which we play? Yes you could, BUT -> What if you picked only the losers from these 15? We are aware that many of our strangles can and will lose money. The idea is that the winners can compensate for the losers and even generate a profit for the whole investments. Tha's why we never put all eggs in one basket and prefer to have between 10-15 strangles at once.
What does TheStrangle cost?
Currently we will list all our trades and ideas for free. So you can see what we do and if TheStrangle is suitable for you. If trust is built up and you see our track record, we will convert the whole thing into a paid service sometime at the end of 2020. The costs will be negligible. Our service will be offered as a 6-month subscription and will cost $50 per month - so the cost will be $300 for a half year or $600 for a full year. A single successful trade can easily bring this back.
Are we Scammers?
No! The best part is, we are not front-runners. With Pennystock Newsletter it is often the case that some pushers buy shares at a low price, then advertise them via their expensive newsletter, only to sell the shares at a high price to the subscribers. At the end only the newsletter gurus get rich.
At TheStrangle we trade options of well-known and large stocks or ETFs. Since we buy both calls and puts on the selected basis instrument, our service has no influence on the price of the underlying stock or ETF.
Website still in development
As you can see - this website is still under construction. We are heavily engaged in trading and can only work on the website in our sparetime. But step by step it will get there. So come by from time to time and check out where we are. We can promise one thing - it will be an interesting journey.
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