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.

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 ...

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 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 ...

How options traders can profit from a big stock move, regardless of direction With earnings season underway, we decided it would be beneficial to explore one way options traders can profit from a big ...

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 ...

We are halfway through the third full year with daily expirations for NDX index options. As the market is relatively new, the results for buying or selling 1-day at-the-money (ATM) straddles continue ...

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 typically ...