The Nifty VIX (volatility index) is often inversely related to the Nifty 50. When the Nifty falls dramatically, volatility increases. When the Nifty has record positive performance, volatility ...
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 ...
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 ...
The risk with options straddles and options strangles is limited Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied ...
Switch Straddle/Strangle Suppose the outcome of a significant event is expected to be announced soon. If the outcome is as expected, the underlying is likely to climb up sharply. If the outcome is ...
A strangle is not as violent as it sounds, nor as deadly. It simply is a variation on the straddle, and it presents some interesting possibilities in terms of profit potential and risk. When two ...
Buying a straddle profits from significant price swings regardless of direction. Selling a straddle profits when the stock price remains stable near strike price. Straddle buying is risky before ...
Earnings season is in full swing, with Wall Street awaiting reports from several Big Tech names this week. While fast approaching, there's still time to speculate on volatility using options. One way ...
With earnings season ramping up, traders might be looking for a way to cash in on this especially volatile time of the year. However, predicting a stock's post-earnings trajectory can be difficult to ...