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 straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied volatility (IV) and stock price volatility. Options straddles and ...
In a long straddle, when the underlying stock goes above the breakeven point, the calls will profit and the puts will be completely out of the money, resulting in an overall profitable position.
We recently published a performance review of at-the-money (ATM) NDX straddles with between one and five days left to expiration. One finding was that consistent sellers of 3-Day, 4-Day, and 5-Day NDX ...
Since 1973, when Options were first traded, they garnered a reputation of being highly risky investments designed for expert traders. However, the reward that comes with the risk of investing in ...
You can be an amateur investor who is just starting and trying different strategies or a professional who knows when and where to invest money. However, one thing is universal and known to both types ...
Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...
Straddles and strangles are slightly more complicated strategies than trading delta – but still among ways to start using the potential of options trading. Like most other options strategies, both ...
Option investors have a unique ability to profit in the market no matter which direction a stock's price moves. A straddle is a great example of this kind of strategy. A straddle is market neutral ...