How to Trade Option Straddles: A Webinar
03/16/2012 6:00 am EST
A recent Webinar hosted by Bryan Sapp of Schaeffer’s Research aims to teach viewers how to identify potential trade set-ups for which option straddles can be used to capitalize.
Recently, Schaeffer's senior trading analyst Bryan Sapp was invited to co-host a Webinar on volatility. Those of you who already know Bryan as our resident straddle expert probably won't be too surprised by the topic of his presentation.
By purchasing straddles, an option buyer is betting that the underlying security will make a big directional move, and/or the implied volatilities of the security's options will increase over the time frame of the trade.
See related: Trader Q&A: 6 Tips on Option Straddles
As Bryan explains, the ability to recognize shifts within the market can create enormous profit opportunities for a straddle buyer, regardless of the direction of a particular stock or the market itself.
Over the course of the Webinar, Bryan teaches you everything you need to know to jump into straddles with confidence, including how to recognize chart patterns and technical indicators that lead to periods of volatility, as well as how to capitalize on cheap option premiums to exploit inefficiencies within the market.
Here’s the video:
By Bryan Sapp, contributor, Schaeffer’s Research