Strike Price Anchoring with Probabilities - Options Trading Strategies
Option Alpha Option Alpha
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 Published On May 5, 2016

Strike price anchoring is a term we coined years back and refers the concept of finding the short strikes that become the basis for any short premium (option selling) strategy you'll enter. Once you find the short strike with the targeted probability you are looking for, you can build a variety of strategies off this "anchor point" to create high probability entries.

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