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"How to Trade a Short Straddle in Singapore ?"

If you want to generate high income from options trading when you expect a stock to stay within a stable range, the Short Straddle is one of the most powerful strategies available.

Unlike the Long Straddle (where you buy both options), the Short Straddle sells both, allowing you to profit when the stock does NOT move much.

This is a premium-collection strategy used by high-income Singapore investors when the market is calm or when volatility is expected to fall.

What Is a Short Straddle?

You SELL:

1️⃣ A Call Option 2️⃣ A Put Option

Same stock. Same strike. Same expiration.

Your goal: ✔ Stock stays near the strike price ✔ Both options expire worthless ✔ You keep the entire premium

Why Traders Use It

✔ Generates high premium ✔ Works well in stable markets ✔ Takes advantage of falling volatility ✔ Great income strategy for patient investors

The Short Straddle is one of the highest-paying options strategies — when used responsibly.

Real ~$1,000 Example (AAPL)

Apple trades at $190.

StepTradeOptionPremium Collected1Sell CallAAPL 190 Call$52Sell PutAAPL 190 Put$5Total Credit——$10 = $1,000 collected

You immediately receive ~$1,000.

How You Profit

1️⃣ AAPL stays near $190

Both options decay. ✔ Maximum profit = $1,000 ✔ Best-case scenario

2️⃣ AAPL moves moderately up or down

You may need to adjust the position. ✔ Still profitable if it stays within the break-even zone.

Break-even points:

DirectionFormulaBreak-EvenUpStrike + Premium190 + 10 = $200DownStrike – Premium190 – 10 = $180

Any close between $180–$200 = partial or full profit.

3️⃣ AAPL moves aggressively

Short straddle loses when the stock makes a large move. ✔ Risk can be managed using roll adjustments ✔ Most traders use it only with strong discipline

This is why the Short Straddle is recommended for experienced traders who understand risk and know how to adjust positions.

Why High-Income Singapore Investors Use Short Straddles

✔ Extremely high premium collection ✔ Works beautifully in low-volatility markets ✔ Clear structure and predictable income ✔ Perfect for range-bound stocks ✔ A key income strategy inside the Best Options Trading Course in Singapore for Millionaires

When the market is calm, Short Straddles can produce some of the highest ROI in the options world.

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