Thought it would be useful to have a discussion of certain strategies with options.
To kick it off...
I was watching Closing The Gap 30/05/2014 Episode on Tastytrades whereby they discussed Covered Strangles. This involves selling a put, alongside a covered call. However, wouldn't it have been easier then to sell one OTM Put and one ITM Put as opposed to buying a stock, and then selling a call & put against that stock (latter having a higher commission). Liquidity for ITM options are not an issue, because we only work with liquid products.
I must be missing something... but I can't seem to figure it out. Help?