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THE OPTIONS COURSE- Straddles, Strangles, and Synthetics

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THE OPTIONS COURSE Straddles,  Strangles,  and Synthetics The successful delta neutral trader looks at a market scenario with a  discerning eye. Delta neutral trading involves hunting for the optimal  mathematical relationship among strikes, premiums, and expiration  months. The final strategy creates the highest probability of profitability  and enables the trader to enjoy consistent returns on investments. For ex ample, if I’m going to buy stock shares, I’m also going to buy or sell some thing in the options pit. When I put on one trade, I simultaneously put on  another. These kinds of multiple trade strategies require a trader to con sider the market from three directions. 1. What if the market goes up? 2. What if it goes down? 3. What if it doesn’t go anywhere at all? Do not confuse assessing these possibilities with trying to forecast  market direction. Delta neutral traders do not need to guess which way the  market will move because they have assess