Strangles are Out of the Money and Straddles are At the Money

Today we compare a Short Strangle or Iron Condor with a Short Straddle on two different equities.

Does a short Straddle or a short Strangle offer more premium?

Which strategy has more risk and which strategy allows us a larger margin of error

We will break down how far the stock can move for each strategy to remain profitable and which one of these strategies appears the most attractive.