Long straddles allow gains if a stock moves significantly, either up or down, after setup. The trade's risk is capped at the initial cost, but full loss occurs if stock ends at strike price. Straddles ...
Volatility remains compressed as this bull market rolls on, with the VIX Index closing at 12.55 yesterday. When volatility is low, options become cheaper, so today we’re taking a look at the Long ...
A short straddle is an advanced options strategy used when a trader is seeking to profit from an underlying stock trading in a narrow range. Since it involves having to sell both a call and a put, the ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Options strategies can seem complicated, but that's because they offer you a great deal of flexibility in tailoring your potential returns and risks to your specific needs. One interesting strategy ...
A straddle can be considered a volatility spread, as the trader who puts on the straddle is speculating on the volatility, or degree of movement of the underlying, not necessarily the direction of ...
The risk with options straddles and options strangles is limited Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied ...
Volatility has tanked since the election, with the VIX Index closing at 14.02 yesterday. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener. A ...
Options are a popular way for traders to make money in the market. While basic option strategies let traders take big swings — with some big risks — more advanced multi-leg options strategies allow ...
A short straddle is an advanced options strategy used when a trader is seeking to profit from an underlying stock trading in a narrow range. To execute the strategy, a trader would sell a call and a ...