A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...

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 ...

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 ...

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 ...

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 ...

A short straddle is a neutral options strategy that entails writing uncovered, or naked, calls and puts simultaneously, at the same strike price and expiration, on a certain underlying stock. With a ...

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 ...

Straddles and com-binations are volatility trades unique to the options market. A straddle or a combination is profitable if the underlying security trades inside (if you are selling a straddle or a ...

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 short straddle is a neutral options strategy that entails writing uncovered, or naked, calls and puts simultaneously, at the same strike price and expiration, on a certain underlying stock. With a ...