A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...
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 ...
If you're new to options trading, you might be confused by the many terms, such as vertical options, straddles, and strangles. The following article will introduce you to each type and explain why ...
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 ...
Put and call options are the building blocks of many options trading strategies. A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price ...
Straddles and com-binations are volatility trades unique to the options market. A straddle or a combination is profitable if the underlying security trades inside (if you are selling a straddle or a ...
When the stock market becomes a roller coaster, the gains and losses both get larger. Traders have the potential to make profits during volatility, but getting it wrong can result in losses. Some ...
When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. A strangle is a variation on the straddle, and it presents some interesting possibilities in terms of profit ...
A strangle is not as violent as it sounds, nor as deadly. It simply is a variation on the straddle, and it presents some interesting possibilities in terms of profit potential and risk. When two ...
Finding optimal swing trades can be tricky when the stock market is chopping in a range. However, volatility option strategies that benefit from time decay can be a great choice, especially if implied ...