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 ...

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 ...

On the other hand, a short strangle involves simultaneously selling out-of-the-money calls and puts on the same stock with the same expiration. By doing so, you're betting on the exact opposite result ...

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with practical examples for beginners.

"Strangle options" have a violent name, but have a vital role in investments. Strangle options are use both put and call options effectively to place bets on how stable the movement of a stock will be ...

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 strangles are ...

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...

Options-based strategies have seen impressive growth in recent years, whether it’s through ETFs, mutual funds, or separately managed accounts. Investors have turned to alternatives, including ...

Options are a type of derivative, meaning they “derive” their value from the securities they’re linked to. Options are also leveraged, meaning a smaller amount invested in them generates larger gains ...

A strangle option can allow investors to bet on a big move in a stock, or to bet against one. A strangle option strategy involves the simultaneous purchase or sale of call and put options in the same ...

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 ...