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 ...
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 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 ...
Forbes contributors publish independent expert analyses and insights. Specializing in options trading for more than 35 years. Basically, a trader enters into a long straddle by buying to open a call ...
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 ...
The straddle options strategy is employed by traders expecting a significant move from an equity, but who are unsure of the direction of this move. Additionally, since the strategy relies heavily on ...
A short straddle is a two-legged spread that offers an initial upfront credit, but carries the risk of potentially heavy (in fact, technically unlimited) losses. The strategy is intended to profit ...
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 ...
Budget week inflates option premiums due to market uncertainty, with Nifty ATM straddles consistently opening high. While volatility rises pre-Budget, an "IV Crush" consistently deflates premiums post ...
Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...
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 ...