Choose a US publicly traded company or ETF that has average daily trading volume of at least
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Question:
Choose a US publicly traded company or ETF that has average daily trading volume of at least one million shares and for which you have a market neutral outlook (i.e. neither too bullish nor too bearish). Check to make sure that CBOE offers options on the stock or the ETF.
Step 1: A short strangle: Simultaneously sell OTM Put and OTM Call. Both options have the same expiration date. Briefly explain how and why you chose the strike prices and the expiration date for the options. For example take company Tesla TSLA 1570 Put and Tesla TSLA 1585 Call
Step 2: At the end of the trading week 6 days after you made the trade at the step 1, you have to reverse your trade. What factor will make your strategies will successful or unsuccessful
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