A 'short strangle' options trade for a stock trapped in a trading range

Toast Inc. (TOST) , a leading provider of cloud-based restaurant management software, trades at approximately $40.75, firmly entrenched within a $30 to $50 trading range observed over the past six months. This consolidation reflects the benefit of steady operational progress and the headwinds of an economy experiencing relatively slow growth, a stretched consumer and relatively high valuation. The combination of technical, fundamental and macroeconomic factors supports a range-bound outlook, tempering expectations for significant breakouts (or breakdowns) absent a major catalyst. When combined with relatively high options premiums, 3-6 month implied volatility is close to 50%, Toast may present an interesting candidate for a "short strangle." What is a strangle? A "strangle" options strate