What are the tradeoffs between trading high delta strangles vs low delta strangles? And why?
Although 2 SD (5 delta) strangles seem safer because of their lower risk, profits and return on capital are greatly sacrificed while POP is much higher. Higher delta strangles (1 SD and 1⁄2 SD) are more risky, but make up for it with their larger ROC and higher raw P/L.
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