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 ...

A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields a profit if the asset’s price moves dramatically either up or down.

A few months ago, we explored trying to smooth out performance of consistently shorting straddles with a buying dated long straddle using NDX options. We found that a consistent strategy selling NDX 3 ...

The financial markets have experienced strong volume growth in the short- dated index option arena. This paper explores the performance of short-dated index options versus the subsequent price move in ...

The straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you trade on ...

A synthetic short strategy allows investors to simulate risk/reward Savvy traders know that selling a stock short isn't without its downsides. Namely, you have to borrow shares from a broker. However, ...

However, then we flipped into the short strangle strategy in the next move. In total, we've locked in $5.92 in option premiums so far in 2025. That moves up to $7.36, pending the outcome of the latest ...

Staying neutral can be difficult, whether in lunchroom arguments at work, watching a battle between rival sports teams or trading stocks in a volatile market. But one of the advantages of markets is ...