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 ...

An option gives traders the right, but not the obligation, to trade the underlying asset that it is linked to. Whether the underlying asset moves up or down in value, an options straddle is a trading ...

Recently, we published a study exploring the behavior of short-dated straddles using Nasdaq-100 (NDX) options. That write up may be found here A Deep Dive Into Short Dated at-the-Money NDX Straddles.

Buying a straddle profits from significant price swings regardless of direction. Selling a straddle profits when the stock price remains stable near strike price. Straddle buying is risky before ...

A short straddle is an advanced options strategy used when a trader is seeking to profit from an underlying stock trading in a narrow range. Since it involves having to sell both a call and a put, the ...

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. A strangle is a variation on the straddle, and it presents some interesting possibilities in terms of profit ...

Finding optimal swing trades can be tricky when the stock market is chopping in a range. However, volatility option strategies that benefit from time decay can be a great choice, especially if implied ...

Options allow for greater flexibility when it comes to expressing a wide variety of market outlooks. Implied volatility tends to rise into earnings events, providing options sellers with potential ...

If you're new to options trading, you might be confused by the many terms, such as vertical options, straddles, and strangles. The following article will introduce you to each type and explain why ...