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 ...

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 ...

"Strangle options" have a violent name, but have a vital role in investments. Strangle options are use both put and call options effectively to place bets on how stable the movement of a stock will be ...

An options strangle is a strategy to profit from price swings in either direction of an underlying asset. How does an options strangle work and what are the risks and rewards involved? Benzinga ...

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 ...

1. Profit from stock price gains with limited risk and lower cost than buying the stock outright Example: You buy one Intel (INTC) 25 call with the stock at 25, and you pay $1. INTC moves up to $28 ...

On the other hand, a short strangle involves simultaneously selling out-of-the-money calls and puts on the same stock with the same expiration. By doing so, you're betting on the exact opposite result ...

Long strangle option buys a call above and a put below current stock price. Strategy profits if stock moves significantly beyond the breakevens. Maximum loss is the initial cost of setting up the ...

Many are looking at this market, with the S&P 500 (SPX) trading up at the 1520 level, and saying it seems to be completely overbought. However, others have spent their time looking at the numbers and ...

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

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 ...

A strangle option can allow investors to bet on a big move in a stock, or to bet against one. A strangle option strategy involves the simultaneous purchase or sale of call and put options in the same ...