is not as violent as it sounds, nor as deadly. It simply is a variation on the straddle, and it presents some interesting possibilities in terms of profit potential and risk. When two strangles are ...
Earnings season is here, ladies and gentlemen, and with it comes heightened volatility for many stocks as investors anticipate, and react to, quarterly reports. What can savvy traders do to capitalize ...
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 ...
Put and call options are the building blocks of many options trading strategies. A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price ...
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 ...
Options are a type of derivative, meaning they “derive” their value from the securities they’re linked to. Options are also leveraged, meaning a smaller amount invested in them generates larger gains ...
Options trading allows investors to limit their risk and leverage their capital, but it can also expose them to amplified losses. It’s one of the most flexible trading styles because of the many ...
The big news story on Wednesday was the 17% drop in Advanced Micro Devices’ (AMD)share price after CEO Lisa Siu provided weak ...
Selling options is often described as an attractive way to generate income, but it also carries a reputation for hidden risk. Stories of traders collecting small premiums for months—only to give it ...
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 ...