Straddles and strangles are slightly more complicated strategies than trading delta – but still among ways to start using the potential of options trading. Like most other options strategies, both ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Katrina Ávila Munichiello is an experienced ...

Three weeks ago, we discussed the Straddle – in which we would buy a call and a put simultaneously with the same strike and the same expiration date. The intention was to capitalize on the recent drop ...

This week, we discuss Strangle, a volatility strategy that can be set up to trade events whose outcomes are uncertain. The position can also be created to capture expected breakout and breakdown in an ...

An option gives traders the right, but not the obligation, to trade the underlying asset that it is linked to. Whether the underlying asset moves up or down in value, an options straddle is a trading ...