The short straddle options strategy uses a short call and a short put at the same strike to profit from stagnant price action in the underlying stock.

Learn about the Short Straddle Options Strategy, how it works, its risks and rewards, and when traders use it to profit from low market volatility ...

Your breakeven points for a short straddle are the strike price of the options, plus or minus the total premium you collected. In the Wal-Mart example, this translates to $70.35 and $75.65.

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.

One idea was to combine long NDX option positions with short dated short straddles. A first run at this suggestion yielded promising results.

For example, on the close on a Monday, a 3-day straddle would expire, and a straddle would be sold using options expiring that Thursday (in 3 days) just before the market close.

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 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 ...