Yes...the 2nd. The probability of profit is lower when you buy
either a straddle or a strangle (than in selling either of the same
strikes), but much, much lower when you buy a far out-of-the-money
strangle. The probabilities are knowable at any given time and are
highly valuable in trade selection.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
thanks, a_i! I think you
SPY, NFLX short starting to work. GDX long inv h/s ...
Posted by frtaylor on 30th of Jan 2015 at 04:04 pm
thanks, a_i! I think you meant straddle for one of those two trades, yes?
Yes...the 2nd. The probability of
Posted by a_l_ on 31st of Jan 2015 at 08:39 pm
Yes...the 2nd. The probability of profit is lower when you buy either a straddle or a strangle (than in selling either of the same strikes), but much, much lower when you buy a far out-of-the-money strangle. The probabilities are knowable at any given time and are highly valuable in trade selection.