A Review of Longer Term Straddles & Strangles..
When market direction is uncertain and conditions are anything but calm, what's an option trader to do? Two strategies that might fit are longer term straddles or strangles.
additional risks and multiple commissions
- Stock at 50
- Buy to open a call, strike price 50
- Buy to open a put, strike price 50
- Stock at 50
- Buy to open a call, strike price 52.50
- Buy to open a put, strike price 47.50
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options available at http://www.tradeking.com/ODD.
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