Why A Short Strangle Trade Might Be Best For Volatile Stocks Like Merck

investors.com/research/options/merck-mrk-stock-short-strangle-options/?src=A00220

is showing high implied volatility at 32.3%, which is close to the highest level of volatility we have seen for this stock in 12 months. As option traders, we can take advantage of that by selling a "short strangle."
A short strangle involves selling an out-of-the-money put and an…

This story appeared on investors.com, 2025-05-06 15:42:18.
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