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Maybe Time for Longer Term Straddles & Strangles...

Options Trading TradeKing

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When market direction is uncertain, but conditions are anything but calm, what's an option trader to do? Two strategies that might fit are longer term straddles or strangles.
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additional risks and multiple commissions long straddle
  • Stock at 50
  • Buy to open a call, strike price 50
  • Buy to open a put, strike price 50
Vega long strangle
  • Stock at 50
  • Buy to open a call, strike price 52.50
  • Buy to open a put, strike price 47.50
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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options available at http://www.tradeking.com/ODD.
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