A short straddle is an advanced options strategy used when a trader is seeking to profit from an underlying stock trading in a narrow range. Since it involves having to sell both a call and a put, the ...

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 ...

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 ...

Options allow for greater flexibility when it comes to expressing a wide variety of market outlooks. Implied volatility tends to rise into earnings events, providing options sellers with potential ...

Options are a popular way for traders to make money in the market. While basic option strategies let traders take big swings — with some big risks — more advanced multi-leg options strategies allow ...

A synthetic short strategy allows investors to simulate risk/reward Savvy traders know that selling a stock short isn't without its downsides. Namely, you have to borrow shares from a broker. However, ...

Trading stocks allows you to capitalize on price fluctuations and long-term trends to realize profits. Some people happily buy and sell stocks, but others seek options trading as a way to potentially ...

When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...

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 ...

The stock market can feel like a roller coaster, with every day bringing new information for investors to consider. However, the market can feel tame and less volatile during some stretches. Many ...

A snapshot of the top strategies to make money from a highly volatile market Heading into the new year, traders expecting more volatile markets may want to refresh their approach. Discover the top ...