Finance

Buying straddles can be really pricey, and the underlying stock needs to move enough to make up for the expense of 2 option agreements. When the probability of the stock moving outweighs the expense of the straddle, straddles ought to be acquired. This condition can be determined by determining the previous cost history and comparing it to the present option costs. There would be a benefit to buying a straddle if the option rates are traditionally low. Sell it if a Straddle is pricey The benefit is to sell the straddle if the option costs are high. High straddle rates usually indicate a substantial approaching cost modification in the underlying stock. A short straddle trader offers both the put and the call at the exact same strike rate, gathering the premium from 2 options simul...