The Top Stocks for Straddles in the Past Two Years However, the stock move must be bigger than simply buying a call or put, because it must be enough to cover both premiums that were bought. This takes direction out of the equation, so the position can profit whether the stock goes up or down. The call and put should have the same strike and expiration date.
A straddleconsists of buying a call option and a put option on a stock. To determine stocks that have had attractive options, I calculated returns on straddles over the past two years. How to Find Stocks With Attractive Options This week, I’ll list some stocks whose options are thriving in this low VIX environment. This lowers options prices, which means stocks need a smaller move to be profitable. As volatility has fallen, so have the expectations for volatility. It is a bit of a myth that options traders require a lot of volatility to be profitable. A few weeks ago, I wrote about 2017 having the lowest average CBOE Volatility Index ( VIX) reading ever (we have VIX data back to 1990). Stock market volatility has been extremely low for some time now.
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