The straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you trade on ...

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 ...

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 ...

Volatility has eased in recent days as the market digests the tech sector continues to lead the way. However, volatility ...

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 ...

Tesla's stock was rallying 3.7% in recent after-hours trading, to put it on track for the best one-day post-earnings ...

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 ...

Volatility has eased in recent days as the market digests the tech sector continues to lead the way. However, volatility ...