The Key to How to Trade Straddles
Posted on Friday, May 27, 2022 at 4:36 PM
Dan Passarelli, CEO - Market Taker Mentoring
Many option traders have a tough time trading straddles. They can be a challenge. And many traders simply can't make them work. In this video I will share the key to how to trade straddles, so you can simplify it for yourself and enjoy more success trading them. Straddles success depends on volatility. In the context of options, there are two distinct types of volatility: implied volatility and historical volatility. Both are important in straddle trading. While many option traders focus only on needing the stock to move, i.e., historical volatility, buying straddles for value means traders must focus on implied volatility as well. We need to find under-priced straddles.
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