Do you believe a stock is set to move sharply in the next few days, weeks or months? You don’t have to guess the direction if you initiate a strangle or a straddle. These options trading strategies ...
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 ...
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 ...
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 ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...
Market volatility could be your friend too, and I will discuss how investors can take positions in stocks based on expected volatility. Options are not only useful to hedge risks and could be used by ...
With earnings season ramping up, traders might be looking for a way to cash in on this especially volatile time of the year. However, predicting a stock's post-earnings trajectory can be difficult to ...
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 ...
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 options market isn't expecting Nvidia's earnings to provide much excitement in the stock, based on the pricing of "straddle" strategies. Straddles are pure volatility plays — they aren't ...
Buying a straddle options strategy profits from large price swings, regardless of direction. Selling a straddle is profitable when the underlying security's price remains stable. Straddle strategies ...