From Theory To Practice - December 28, 2021 - How to Skew a Strangle

The classic, neutral short strangle is one of our go-to strategies at tastytrade. It allows us to collect credits on both sides of the market, while taking full advantage of the benefits of short premium. At times, however, you might want to move from a purely neutral strangle into a skewed strangle that has more of a directional bias. Looking at a potential trade in QQQ, we explore the two different ways you can create a bearish bias in a short strangle.