I recently traded a covered call on a high volatility stock. Didn’t particularly want to own the stock, but the call premium was so high I got in with a low break even.
The the stock fell significantly, IV was still high, and puts were selling at a high premium. So I sold that too.
Now I have a short strangle with stock in the middle. That strategy got a name?
As far as cons and risks, I can’t think of any other than having to pony up the shares on one side thereby leaving me naked on…