When most traders think of making money in the markets, they picture buying low and selling high — or riding a trend. But ...

A Short Straddle is a complex Options strategy that consists of selling both a Call option and a Put option, with the same strike price and expiration date.

Sell 1 Put Option Example Suppose NIFTY is trading around 5200 levels, Mr. X does not expect the market to move sharply in the near future and implements a Short Straddle Strategy.

Simple strategy 2: straddle and strangleWhat about a short straddle? With a short straddle you can benefit if volatility collapses, by selling both the calls and puts. The strategy behind the short ...

A short strangle is an options trading strategy that involves selling a call option and a put option on the same underlying stock with the same expiration date. This article explains what that ...

The covered straddle strategy is considered to be a bullish options strategy, since there’s unlimited downside potential. But by writing a call option, the strategy has limited profit potential ...

The first situation is that IV decreases after you place the short straddle. Since you are selling options, you are short volatility and are betting that option prices will decrease.

A straddle strategy allows traders to profit from market volatility without predicting direction. A long straddle bets on volatility, while a short straddle bets against it.

Simple strategy 2: straddle and strangle Straddles and strangles are slightly more complicated strategies than trading delta – but still among ways to start using the potential of options trading.