Probably the best thing about being options trader is the incredible flexibility we have when combining them to form new risk profiles. Options can also be combined in varying amounts to increase or ...

We recently published a performance review of at-the-money (ATM) NDX straddles with between one and five days left to expiration. One finding was that consistent sellers of 3-Day, 4-Day, and 5-Day NDX ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

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 ...

Investors who foresee renewed volatility in ether ETH $3,228.45 and bitcoin BTC $92,287.47 can consider building an option strategy that profits from an increase in price turbulence. Markus Thielen, ...

Financial advisors may want to look at index straddles as a strategy to hedge against volatility in clients’ portfolios in the weeks ahead. That’s because volatility is short-term noise driven by ...