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 straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you trade on ...
The options market is priced for a one-day post earnings move in Tesla's stock that would be slightly bigger than usual over the longer term, but less than its more recent moves. An options strategy ...
How to profit from a big move in either direction With earnings season right around the corner, options players might want to look into employing a long straddle strategy. A long straddle is typically ...
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 ...
Market volatility could be your friend too, and I will discuss how investors can take positions in stocks based on expected volatility. Options are not only useful to hedge risks and could be used by ...
A few months ago, we explored trying to smooth out performance of consistently shorting straddles with a buying dated long straddle using NDX options. We found that a consistent strategy selling NDX 3 ...
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.
Volatility has eased in recent days as the market digests the possibility of more rate cuts. However, volatility could rear ...
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 ...
This past week's stock market rally was not surprising. That's because a specific type of option trade known as a “Straddle” is currently profitable. When Long Straddle* trading is profitable in a ...