A short straddle is a neutral options strategy that entails writing uncovered, or naked, calls and puts simultaneously, at the same strike price and expiration, on a certain underlying stock. With a ...
Since 1973, when Options were first traded, they garnered a reputation of being highly risky investments designed for expert traders. However, the reward that comes with the risk of investing in ...
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 ...
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 ...
It is no secret that short-dated index options have taken the trading world by storm over the past couple of years. Most of the focus is on very short-dated index options that have a day or less to ...
A straddle can be considered a volatility spread, as the trader who puts on the straddle is speculating on the volatility, or degree of movement of the underlying, not necessarily the direction of ...
Jack Daniel’s maker, Brown-Forman, reported Q4 2025 results this morning before the markets opened. The news was not comforting for long-time shareholders. As a result, its shares are down more than ...
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.