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 options strategy profits from large price swings, regardless of direction. Selling a straddle is profitable when the underlying security's price remains stable. Straddle strategies ...

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 ...

Learn about the U.S. tax implications for call and put options, including short-term and long-term gains, exercising options, ...

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 ...

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 ...

Market volatility could be your friend too, and I will discuss how investors can take positions in stocks based on expected volatility. Options are not only useful to hedge risks and could be used by ...