Why do the vast majority of sophisticated option investors use combination strategies such as straps, strangles,...

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Why do the vast majority of sophisticated option investors usecombination strategies such as straps, strangles, straddles,collars, butterfly spreads, iron condors and iron butterflies? Pickone of these combination strategies and explain specifically how itworks and why you would want to use it.

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A combination strategy is a strategy in which option investors take positions in both calls and puts on the same stock An option investor uses a combination strategy to minimize hisher risk and to    See Answer
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Why do the vast majority of sophisticated option investors usecombination strategies such as straps, strangles, straddles,collars, butterfly spreads, iron condors and iron butterflies? Pickone of these combination strategies and explain specifically how itworks and why you would want to use it.

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