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 ...

Here, this example involves buying straddle options with a strike price of $50 and paying a total of $10 in premium for the two options. In this case, the worst-case scenario is if the stock doesn ...

When most traders think of making money in the markets, they picture buying low and selling high — or riding a trend. But ...

The examples given do not include commission charges, which may be significant. In addition, multiple leg strategies, such as straddles and strangles, will incur multiple commission charges. Also note ...

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 ...

For example, the investor can write the aforementioned December 24 straddle on AIG at $3.44 and buy the December 21 - 27 strangle for $1.35 - by purchasing December 21 puts for $0.85 and buying 27 ...

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

Examples of announcement events include earnings releases, lawsuit resolution, and legislation enactment. Both the Straddle and the Strangle trade were developed precisely for these opportunities.

An example might help. With CHK trading around $5.18, a logical place to initiate a long straddle is at the near-the-money weekly 8/5 5 strike.

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 ...

Tesla shares surged last week when it released surprisingly strong delivery figures - so much so that the stock-price gain was nearly twice as large as its straddle cost. An option straddle ...