Straddles are a good strategy to pursue if an investor believes that a stock's price will move significantly, but is unsure as to which direction. The stock price must move significantly if the investor is to make a profit. As shown in the diagram above, should only a small movement in price occur in either direction, the investor will experience a loss. As a result, a straddle is extremely risky to perform. Additionally, on stocks that are expected to jump, the market tends to price options at a higher pmium, which ultimately reduces the expected payoff should the stock move significantly.
Straddle
外汇网2021-06-19 13:47:02
135
An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.Straddles are a good strategy to pursue if an investor believes that a stock's price will move significantly, but is unsure as to which direction. The stock price must move significantly if the investor is to make a profit. As shown in the diagram above, should only a small movement in price occur in either direction, the investor will experience a loss. As a result, a straddle is extremely risky to perform. Additionally, on stocks that are expected to jump, the market tends to price options at a higher pmium, which ultimately reduces the expected payoff should the stock move significantly.
Straddles are a good strategy to pursue if an investor believes that a stock's price will move significantly, but is unsure as to which direction. The stock price must move significantly if the investor is to make a profit. As shown in the diagram above, should only a small movement in price occur in either direction, the investor will experience a loss. As a result, a straddle is extremely risky to perform. Additionally, on stocks that are expected to jump, the market tends to price options at a higher pmium, which ultimately reduces the expected payoff should the stock move significantly.
标签：
- 上一篇： American Option
- 下一篇： Out Of The Money - OTM
随机快审展示
加入快审,优先展示
推荐文章
- 黑马在线:均线实战利器 9259 阅读
- 短线交易技术:外汇短线博弈精讲 4493 阅读
- MACD震荡指标入门与技巧 4634 阅读
- 黄金操盘高手实战交易技巧 5056 阅读
- 做精一张图 3753 阅读
热门文章
- 港币符号与美元符号的区别是什么啊？ 27266 阅读
- 我国各大银行汇率为什么不一样啊？ 17265 阅读
- 越南盾对人民币怎么算的？越南盾对人民币汇率换算方法是什么 12224 阅读
- 百利好环球欺诈，不给出金，无法联系。 11337 阅读
- 港元符号是什么啊 港元符号跟美元符号是一样吗 10431 阅读