Profiting With Straddles This Earnings Season

[@hakunamate]

very helpful guys and well explained! Thanks

[@mhaddadi]

What about volatility collapse after earning?

[@okeuwechue9238]

The IV collapse affects only the EXTRINSIC value of the option; it does not affect the INTRINSIC value of the option. This strategy is used when you're pretty sure the underlying is going to make a huge move in some direction. Once that happens, one of the strangle legs will become INTRINSIC and that's all that matters - this leg will supply you all your profit. (The other leg will stay EXTRINSIC and will experience the IV collapse you mentioned.)

[@the2ndgem]

Will be interesting as I conduct a study to find out whether longer term or shorter term expiry is desirable. Usually the longer the distance, the more chance it has to travel .... anyways cost is also cost, will be interesting to uncover

[@ISRAELITES-YAHONLY-ISRAEL]

Can I use this video in my ebook. So they can come to your site ?

[@ZacksInvestmentNews]

Melvin, Can you message me your contact info? Thanks, Zacks Video Team

[@ISRAELITES-YAHONLY-ISRAEL]

twitter.com/wallstradamus

[@dankramer9057]

A point I never notice that should dealt with. Is that in a Straddles is one of the of the starting prices in OTM the other is ITM. With the same strike price. One has the advantage over the other. How Is this to deal with.

[@ricardoaugustomuniz1754]

hello do you have another video about straddle option ?

[@naydedocarmo1459]

but when should i close my straddle ?

[@cottondai]

Nice info! Thanks.

[@pradiplamsal1403]

PLEASE TALK ABOUT POTENTIAL IV CRUSH THAT WILL KILL YOUR GAINS EVEN IF THE STOCK JUMPS IN A PARTICULAR DIRECTION. THIS VIDEO CAN BE VERY MISLEADING WITHOUT THAT AND NONE SHOULD GO OFF OF JUST THIS VIDEO. I HAVE LOST A LOT OF MONEY BECAUSE I DID NOT KNOW ABOUT THE IV CRUSH AND ALWAYS WONDERED WHY MY OPTION WAS NOT GAINING AS MUCH EVEN WHEN THE STOCK JUMPED SIGNIFICANTLY.

[@cosmo1kramer]

Why not buy options expiring in 6 months to a year

[@SankalpAnand]

What expiration date you should pick for this strategy if you're targeting earnings season?

[@starwarsjunkie7776]

I try to go for a few weeks out. That way, an IV crush doesn't totally kill me. I try to put on several per week. Been working ok so far with the ones I pick, but time will tell if it's a long-term thing!

[@michaelali2065]

@@starwarsjunkie7776 So does it work out in the long term?

[@adechandra8400]

Great , but you didnt explain premium collapse after earning, make you lose both side, you should be Learn more as the profesional trader

[@joshuapotts2389]

Ade Chandra IV Crush.

[@LegoGunFPS]

exactly. Buying straddle is loser strategy over time. I don't know why they are teaching it to the retails. On the other hand, selling straddle gives you better chance at making profit.

[@LegoGunFPS]

Do these guys know what they are actually talking about? The amount of premium value lost to IV crush can easily offset any profit you make(given that if you actually get a big move). Please backtest and how your result next time before educating others. On the other hand, selling straddle is extremely profitable for earning play because you benefit from IV contraction.