Tips to enter the Short Strangle Option Trading Position:
Continuing further from our earlier part on Profit & Loss Calculations for Short Strangle Options Trading, here are the details about when to enter and exit the Short Strangle option position.

The Short Strangle Entry tips and exit tips are exactly similar to those of Short Straddle Tips to Enter & Exit Short Straddle Options . Readers are advised to check the above link for the same (opens in new window).

In addition to those, one must choose the OTM strike prices wisely. Remember, you as a option trader of Short Strangle want both the OTM call and put options to expire worthless. Hence, select those strike prices which are difficult to reach by the underlying stock, but the current option pricing is good enough to give you good option premium value.
A good way to ensure that is to enter Short Strangle when the volatility values are very high enabling you to collect high prices as option trader. In the high volatility scenario, you can also short large far away OTM strikes for both put and call for a good price.

Let's head on to next part Greeks for Short Strangle Option: Delta, Gamma, Rho, Vega Theta