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. Since it involves having to sell both a call and a put, the ...

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 ...

Recently, we published a study exploring the behavior of short-dated straddles using Nasdaq-100 (NDX) options. That write up may be found here A Deep Dive Into Short Dated at-the-Money NDX Straddles.

When most traders think of making money in the markets, they picture buying low and selling high — or riding a trend. But what’s the best trade to make when a stock does absolutely nothing? That’s ...

Options allow for greater flexibility when it comes to expressing a wide variety of market outlooks. Implied volatility tends to rise into earnings events, providing options sellers with potential ...

Options are a popular way for traders to make money in the market. While basic option strategies let traders take big swings — with some big risks — more advanced multi-leg options strategies allow ...

The risk with options straddles and options strangles is limited Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied ...

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 ...

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 ...

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 ...