Straddles and Strangles
Straddles and strangles are similar and involve a call and a put with the same expiration. Yet, it's the differences between these two strategies that are significant. This chapter will cover various risks and reward from selling or buying these two strategies.
The Short Straddle
The short straddle is an options strategy that can be used if an investor thinks a stock, index or ETF is going to trade in a narrow range until expiration. This is an advanced strategy for experienced options traders that usually requires a margin account. The short straddle captures premium by leveraging time decay of a short at-the-money call and put. Learn the basics of this strategy in the video.
Volatility Strategies
This rebroadcast from the OIC webinar program will provide an overview of strategies that an investor may utilize to potentially capitalize on changes in volatility.
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Long Straddle Basics: Combining a Call and a Put
A long straddle pairs an at-the-money call with an at-the-money put at the same expiration.
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