Discover and read the best of Twitter Threads about #strangles

Most recents (2)

#Day #Trading #Options

#Basic Concept - options day trading focuses only on the underlying #mathematics. It does not rely on any #financial predictions, company results, or market direction.
A #realistic approach is to take advantage of occasional pricing inefficiencies that arise in the #options market.
These #distortions can be related to #earnings announcements, expiry week, weekend #theta decay, intraday implied #volatility swings, differences between overnight and #intraday volatility, or news and #rumors.
Read 22 tweets
#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.
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.
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.
Read 14 tweets

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