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 ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

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 ...

With earnings season right around the corner, options players might want to look into employing a long straddle strategy. A long straddle is typically used ahead of expected volatility (such as before ...

Option "straddles" on Microsoft's stock are priced for a slightly bigger-than-average one-day post-earnings move, and much less than the 6.1% move after last quarter's results. Straddles are pure ...

This past week's stock market rally was not surprising. That's because a specific type of option trade known as a “Straddle” is currently profitable. When Long Straddle* trading is profitable in a ...

Straddles on Alphabet's stock are priced for a one-day post-earnings move that is about 17% greater than the average move over previous 12 quarters. Straddlers are pure volatility plays, what involve ...

Options sold as “volatility plays” hide a structural flaw—one retail traders often discover too late, after the market moves, premiums collapse, and the trade that seemed safe quietly turns costly.

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...