While directional trading involves making bets on the price movements of an underlying asset, non-directional trading is a unique approach that focuses on generating profits from volatility and time ...
While many are familiar with buying stocks in hopes of profiting, the strategies for benefiting from price declines are often less understood. Two powerful tools in the bearish (pessimistic) ...
Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied volatility (IV) and stock price volatility. Options straddles and ...
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, ...
Investor's Business Daily on MSN
Freeport-McMoRan Stock: How A Short Strangle Can Bring A Big Premium
Freeport-McMoRan stock displays high implied volatility. Option traders can take advantage of that by selling what is known as a "short strangle." ...
After we enter a short strangle, we go into position management mode. When movements in share value remain moderate we don't have a directional exposure to the underlying. We just capture time value ...
An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their outlook on a specific asset was bearish.
Discover essential tips to excel in Series 7 options and stock strategy questions. Enhance your understanding and boost your ...
Some results have been hidden because they may be inaccessible to you
Show inaccessible results