Straddle Option Strategy Explained: From Theory to Practice

[@RyanOConnellCFA]

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[@spaceyeti7230]

This was really good tutorial Thanks for putting it together

[@RyanOConnellCFA]

Glad it was helpful!

[@JLUlfe]

Such a good explanation.

[@RyanOConnellCFA]

Thank you!

[@hperezcu]

thanks for the video !!

[@RyanOConnellCFA]

My pleasure!

[@Exton-il2ox]

You are the BEST MAN

[@RyanOConnellCFA]

Thank you!

[@ozellmason2767]

excellent and simple

[@RyanOConnellCFA]

Thank you!

[@borcan22]

I try this strategy (long straddle) on papercont: Long Call SPY strike 598 $11.64 exp 20 Dec & Long Put SPY strike 598 $8.88 exp 20 Dec. Now the question: I am not delta neutral with this position( is about 0.11 positive); I should have -11 SPY shares for 0 delta. How can you suggest me to manage this position: neutral delta or rolling? THX for your input

[@breadb4meat]

most useful one yet

[@RyanOConnellCFA]

I appreciate that!

[@pasupuletimasthan6099]

Iam studying MBA finance.CFA prepare best or not.

[@urbanflavorz]

Why don't you multiple by 100? Shouldn't that be $30 profit per share? and since you have 100 shares in an option.

[@RyanOConnellCFA]

Good question! In the academic world (John Hull's book), an "option" has an underlying of 1 single share. An "option contract" has an underlying of 100 shares. I go based off the text for a lot of these videos and just stick to the option with 1 underlying share for simplicity. If you buy an option contract in your brokerage, the profits and losses you saw here would need to be multiplied by 100 as you said, because your underlying would be 100 shares

[@victoricus1]

what's your favourite option strategy, do you yourself actually use any?

[@arinthel]

He kind of looks like Ricky from Trailer Park Boys.

[@RyanOConnellCFA]

Haha I never heard that one before and I know thats not a good thing but I like Ricky so I'll take it