Long straddle provides opportunities for unlimited rewards and limited risk, whereas short straddle
offers limited rewards and unlimited risk.
Wal-Mart Stores saw what appears to be a short straddle
at its March 55 strike yesterday.
This finding suggests that the positive returns from the short straddle
positions mainly result from decreases in implied volatilities of the options in the straddle.
The striking feature in Figure 5 is that equity behaves like a short straddle
One interesting trading strategy that we haven't covered in a while is the short straddle
In fact, it appears that an option player may have initiated a short straddle
CINCINNATI -- In yesterday's edition of Advanced Options, we explored the short straddle
One interesting trading strategy that we haven't covered in this column is the short straddle
A short straddle
position's maximum profit is limited to the premium collected from both options sold, or just over $1.
It appears that a sizable short straddle
position may have been initiated on Monday.
In option trading yesterday, it looks like a short straddle
was potentially initiated.
Even more complex option trades such as butterflies and short straddles
also revolve around expectations for the underlying security.