James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...
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 ...
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 ...
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 ...
With earnings season right around the corner, options players might want to look into employing a long straddle strategy. A long straddle is typically used ahead of expected volatility (such as before ...
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 ...
The options market isn't expecting Nvidia's earnings to provide much excitement in the stock, based on the pricing of "straddle" strategies. Straddles are pure volatility plays — they aren't ...
The options market has priced straddles on Microsoft's stock for a one-day post-earnings move of $20.94 in either direction, well above the average move over the past 12 quarters of $15.88, according ...
Retail options investors, despite years of the options industry's educational efforts, still lack the sophistication of institutional investors. That's understandable: One's a pro, the other isn't.
The next trade in our discussion of option spreads is the “straddle” in which we simultaneously buy or sell a call and a put with the same strike price and expiration date. The trade is typically ...