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 ...

A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...

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 ...

Options are an increasingly popular way for traders to play the market, and it’s no surprise why. Options let you make some big money if you’re right, potentially multiplying your money, perhaps in ...

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 ...

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 ...

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 ...

Staying neutral can be difficult, whether in lunchroom arguments at work, watching a battle between rival sports teams or trading stocks in a volatile market. But one of the advantages of markets is ...

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 ...