On 9/29 Market Measures Tasty trade showed a study showing the profit target for a straddle and strangle. The straddle at 20 days provided more money than the strangle in 30 days. For the same margin requirement, the straddle profits more dollar profit. The Strangle does provide a higher probability of success than the straddle.
The take away from this is for the SPY
1. Straddle after 20 days, expect to take off if there is a 22% gain.
2. Strangle after 20 days, take off after 57% gain, but following Tasty trade the trade would be taken off after 50% of credit has been lost.
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