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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 |
|---|---|---|---|---|---|
| KLAC | 88% | +$1,278.00 | 1.6 | 57 | 21 |
| MA | 81% | +$664.00 | 2.7 | 41 | 30 |
| GEV | 89% | +$609.00 | 5.1 | 49 | 10 |
| ASML | 88% | +$426.00 | 2.0 | 57 | 21 |
| SYK | 84% | +$354.00 | 2.5 | 41 | 30 |
| NBIS | 84% | +$343.00 | 4.5 | 31 | 12 |
| LLY | 84% | +$328.00 | 2.6 | 41 | 30 |
| LOW | 84% | +$302.00 | 3.3 | 41 | 30 |
| VRTX | 87% | +$295.00 | 2.6 | 41 | 30 |
| MCD | 84% | +$278.00 | 2.8 | 41 | 30 |
| RBRK | 88% | +$242.00 | 3.8 | 44 | 11 |
| V | 86% | +$233.00 | 2.2 | 57 | 21 |
| ABNB | 87% | +$230.00 | 2.4 | 40 | 30 |
| BKNG | 83% | +$223.00 | 1.8 | 40 | 30 |
| MSFT | 83% | +$202.00 | 1.8 | 40 | 45 |
| TSM | 84% | +$200.00 | 1.4 | 41 | 30 |
| GSHD | 83% | +$191.00 | 1.7 | 40 | 45 |
| AMAT | 88% | +$166.00 | 1.3 | 57 | 21 |
| XOP | 84% | +$162.00 | 2.2 | 41 | 30 |
| IBB | 87% | +$162.00 | 3.8 | 40 | 30 |
Backtested results are not a guarantee of future performance.