Discover and read the best of Twitter Threads about #straddles
Most recents (2)
#Straddles vs #Strangles ( Sell only )
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
Would not like to discuss the construction difference between them if you don’t know stop trading #options
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
So probability of one going wrong is always 50% so to simply put one side is goin to get stuck in a #straddle but then market tends to #flucuate a lot so there is always the case of #meanreversion if you have selected the #strike rightly.
Some answers on trading #straddles discussed in the @greekscap #ama today in our #GSRCommunity (1/n)
#OptionsTrading
#OptionsTrading
Trading #straddles involve critical factors including your DTE for the straddle, the underlying and its historical Volatility, what are 1, 2, 3 SD moves. (2/n)
#OptionsTrading
#OptionsTrading
Take $Bajaj-Auto for example. Now in last two days this underlyings has had a 6SD move followed today by a 3SD move.
You need to ask yourself if your options position and adjustment plan can handle those kind of moves before getting into #OptionsTrading.
(3/3)
You need to ask yourself if your options position and adjustment plan can handle those kind of moves before getting into #OptionsTrading.
(3/3)
