Part 3 Learn Institutional Trading

Non-Directional Strategies

Used when you expect low or high volatility but no clear trend.

Straddle

When to Use: Expecting big move either way.

Setup: Buy call + Buy put (same strike, same expiry).

Risk: High premium cost.

Reward: Large if price moves sharply.

Strangle

When to Use: Expect big move but want lower cost.

Setup: Buy OTM call + Buy OTM put.

Risk: Lower premium but needs bigger move to profit.

Iron Condor

When to Use: Expect sideways movement.

Setup: Sell OTM call + Buy higher OTM call, Sell OTM put + Buy lower OTM put.

Risk: Limited.

Reward: Premium income.