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 ...

In a long straddle, when the underlying stock goes above the breakeven point, the calls will profit and the puts will be completely out of the money, resulting in an overall profitable position.

Options strategies can seem complicated, but that's because they offer you a great deal of flexibility in tailoring your potential returns and risks to your specific needs. One interesting strategy ...

The following is an updated interview that originally appeared in the Fall 2012 issue of SENTIMENT magazine, and was reprinted in the market commentary from the July 2016 edition of The Option Advisor ...

The financial markets have experienced strong volume growth in the short- dated index option arena. This paper explores the performance of short-dated index options versus the subsequent price move in ...

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 ...