We recently published a performance review of at-the-money (ATM) NDX straddles with between one and five days left to expiration. One finding was that consistent sellers of 3-Day, 4-Day, and 5-Day NDX ...
Straddles and com-binations are volatility trades unique to the options market. A straddle or a combination is profitable if the underlying security trades inside (if you are selling a straddle or a ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...
Options strategies can seem complicated, but that's because they offer you a great deal of flexibility in tailoring your potential returns and risks to your specific needs. One interesting strategy ...
An “identified straddle” is a straddle in which (1) all the original positions are acquired on the same day; (2) all positions are clearly identified in the investor’s records as being part of an ...
Options techniques to maximize gains and lower risk in flat and volatile market conditions Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.
Short dated or daily index options have taken the world by storm. Nasdaq-100 (NDX) index options are one of just a handful of markets with daily expirations. The process behind rolling out daily NDX ...
A long index straddle is a non-directional “volatility” trade that generates a profit when markets move sharply up or down or when volatility expands. Studies also have shown that volatility has a low ...
One of the attractions of exchange-traded options is the scope to have an each-way bet on the direction of the sharemarket where your view is that it could make a sharp move either way. By ...
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 strategies can seem complicated, but that's because they offer you a great deal of flexibility in tailoring your potential returns and risks to your specific needs. One interesting strategy ...