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Investor's Business Daily

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Business & Economics

Apple options traders can take advantage of high implied volatility by selling a short strangle

Investor's Business Daily
Summary
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63% Informative

Apple (AAPL) is showing implied volatility at 28.7% , which is higher than normal for this stock.

A short strangle involves selling an out-of-the-money put and a call within the same expiration date.

This trade generates a large amount of premium for the option seller, but it does come with risks.

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English

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