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Option Trading - Straddles - Delta Neutral Strategies 1 Citation The great thing about a straddle is that it?s non-directional. This means that you can make money without forecasting market direction. In other words, it doesn?t matter whether the stock price goes up or down in the near future - you can still make money either way - as long as it moves somewhere.The idea behind a straddle is that you simultaneously purchase the same number of call and a put options, with the same expiry date. The plan is, that the profit from the winning option will more than, technorati.com
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1 Citation My son is helping me do some analysis for my trading. He gets the data and does the calculations so that I can decide if there is anything to trade. We looked at a number of stocks that are announcing earnings next week. We found a good trade in Priceline. I sold some Priceline straddles today. The Event They are announcing earnings next Tuesday which makes the implied volatility high, around double the historical volatility. I sold the options far enough away from where the stock is tr, technorati.com
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VXX Trade Thought Deconstructed 1 Citation From The Daily Options Report by Adam Warner is continuing a discussion on going short SPY straddles and covering it with a long position in VXX calls. The idea is that index options are often overpriced so it makes sense to sell them. The implied volatility that you are selling is greater than the realized historical volatility of the SP500. If you get a large move down in the S&P, the VIX will move up and you will be covered, at least to some extent. A sharp move up will hurt both th, technorati.com
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