From Theory To Practice - December 15, 2020 - Minimum Credits on Strangles and Straddles
As we all build out our portfolios, we will inevitably find ourselves using both [strangles](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/from-theory-to-practice-08-21-2020) and [straddles.](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/straddle-defense-03-29-2017) These two strategies are both tried and true ways to play short premium with a neutral bias. But since they’re both undefined-risk in nature, it’s important to recognize the minimum credits we’ll accept at tastytrade for a position of this kind. So today, we use a potential trade in SLV to highlight these thresholds.