tastytraders are familiar with the performance of tradingStrangles. So what about 2SD Strangles? Two Standard Deviation Strangles would (in theory) provide wider profit zones and higher . Is this true from a historical perspective?
In this study, we compared the performances of 1SD and 2SD strangles, taking note of large losses, credit received, return on capital and win rate. The results are clear.
Watch this segment of “Market Measures” for the important takeaways on when (if ever) we should deploy these wide spreads.