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 ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

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 ...

Taxpayers who enter into offsetting positions in actively traded personal property where one or more—but not all—of the positions making up a straddle are taxed as section 1256 contracts (while ...

Creating “synthetics” in the options market is not uncommon. This week, we look at how to create a synthetic straddle and when to optimally use this strategy. A straddle refers to a position carrying ...

Basically, a “successor position” is a new straddle position that is acquired within 30 days before, or 30 days after, the original position was disposed of at a loss and that replaces that original ...

Last week, we discussed why you can trade options even if you do not have a directional view on the underlying. This week, we discuss the first of such volatility trades - Straddle. You can set up a ...