# Short Strangle

> Why are you giving up the protective wings of an iron condor?

| Property | Value |
| --- | --- |
| Market phase | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected |
| Driver | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility |
| Direction | neutral |
| Max profit | the credit received |
| Max loss | unlimited to the upside; put strike minus credit to the downside |
| Risk defined | No |
| Legs | -1 Call @Kc (OTM); -1 Put @Kp (OTM) |
| Approval level | 4 (Uncovered short positions - the highest approval tier and margin requirement) |
| Experience | Advanced |

## Formulas

```text
Break-even: Kp - C / Kc + C
Max profit: C
Max loss: unlimited to the upside; put strike minus credit to the downside
```

## Legs

1. -1 Call @Kc (OTM)
2. -1 Put @Kp (OTM)

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/short-strangle)