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Short Strangle
neutral Uncapped riskMaximum premium for a range-bound view.
When to use it
High IV rank, range-bound ticker, and a margin account. Sell an OTM put and an OTM call. Undefined-risk cousin of the condor.
Max profit
Both premiums collected.
Max loss
Large if the stock makes a big move; manage actively.
Payoff at expiry
illustrative shape — not to scale
■ profit zone
■ loss zone
X axis = stock price at expiry →
How it's built
Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.
Hermes-evaluated setups
High-conviction per-ticker applications — setups with a confidence-adjusted win rate ≥ 80% over ≥20 backtested trades (95% lower bound — honest for the sample size, never a raw 100%). Avg P/L is the mean profit/loss per one-contract position.
| Ticker | Win Rate | Avg P/L / contract | Sharpe | Trades | DTE |
|---|---|---|---|---|---|
| INTU | 83% | +$748.00 | 5.0 | 30 | 30 |
| HUM | 85% | +$330.00 | 2.2 | 43 | 21 |
| HD | 83% | +$168.00 | 2.1 | 30 | 30 |
| MA | 85% | +$155.00 | 1.2 | 43 | 21 |
| CRM | 89% | +$146.00 | 9.3 | 31 | 30 |
| SNOW | 85% | +$131.00 | 1.4 | 43 | 21 |
| NOW | 84% | +$124.00 | 2.3 | 31 | 30 |
| EQIX | 81% | +$108.00 | 0.5 | 43 | 21 |
| NKE | 84% | +$97.00 | 2.7 | 31 | 30 |
| LNG | 85% | +$96.00 | 2.6 | 43 | 21 |
| LOW | 83% | +$92.00 | 1.1 | 30 | 30 |
| MRNA | 81% | +$86.00 | 1.3 | 43 | 21 |
| XBI | 83% | +$78.00 | 2.2 | 30 | 30 |
Backtested results are not a guarantee of future performance.