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It is the best video found in RUclips on long straddle, strangle. Specially in the wake of recent significance price movement of FAANG stocks, fed interest hike looming large, huge acquisitions etc.Thanks Jake takin onus of educating the mass.
What about doing this in a day trading manner on something like Tesla, SPY, etc? Do a strangle at start of day close the losing side and let the winning side run or just see where it's at end of day?
Amar Das 1 second ago It is the best video found in RUclips on long straddle, strangle. Very useful insight on the strategy, Specially in the wake of recent significant price movement of FAANG stocks after earnings , fed interest hike looming large, huge ongoing acquisitions etc.Thanks Jake taking onus of educating the mass.
These are positive vega strategies. Even if the underlying doesn't move, you'll still make money from IV expansion. However, it is still difficult to guess which stocks will move prior to earnings. Use long vol leading up to earnings, then short vol for the crush. Great video.
Thanks Jake to make this video. I have question lets say today 28/06/24 SPY rose to 550 and then all the way down to around 544, If the strike price would around 547, does it mean it could be possible to make profit in both side with straddle strategy? once it hit 550 sell call and then wait once it went down to 544 sell put option to make profit from both direction, is it possible with that strategy? never done, want to learn and apply.
what he probably didn't explain very well in the video is that the mentality of these two strategies is that you don't care which direction the price is going to move. What he did say is that these strategies aren't very good if you know there isn't any news to move the price in any significant way. Why? because if you were holding calls and they made you money, then you were going to sell them and buy puts on any price retracement, then you didn't really need the strategy in the first place. BUT, if news breaks and the price starts to swing wildly, then these strategies are great because the hope is that the price will move past a point where one option covers for the other. (and you don't care which one)
Good points. I trade straddles and strangles often, when they work they are great, but....when they don't holy cow! Needless to say I am looking for a new strategy.
Did you find it? The new strategy? For me, long straddles appear to be the most successful options strategy. I'm here just to check if I'm missing anything.
I do these on the SPY every single day.. I just go 1dte and sell first thing the next morning.. most days I will lose 20 - 40 $ but on the days where SPY moves like 5 - 10 $ I will make like 1000
Love the video, got confused by the Apple stock price? You must have made the video a month ago? Unless I took a nap and apple dropped to 149 at the time of doing the video today? But you got the long call on Apple in your account and I live that call so you must have done it a month ago?
Hey Carlos! Yeah, I filmed this video 3 weeks ago and scheduled it for upload when I was in the field for my Air Force job. I can't make timely videos when I post out for a week at a time. Cheers!
Great video, one thing that kind of puzzled me is, you have said that this strategy is something you would not do, because of the chance of success not being high, what is your recommendation? which strategy is better?
Hey CP! I think it's better to look at the company's fundamentals and technicals and then just decide if it is going up or down. Buy calls if you think it is going up or buy puts if you think it is going down. Cheers!
Hey Jake, which attributes do you find useful to make that determination? P/e ratio? Market Cap? Dividend Yield? Any videos or books that you can recommend?
Hey! Nah, they got a great valuation for the sale of pointillist. That is cash to keep them going. But in the end, I just don't see their mortgage foreclosure business recovering in 2022. Home prices only go up, haha.
Hey DM! I mention them in my most recent videos on $GD and $HCA. With HCI, nothing has changed. We are just waiting for the details of the IPO. With COF, all the financials are selling off because people think interest rate hikes will be delayed because of Omicron. I don't see that happening and I think strong earnings in Jan will bring COF to all new highs.
Give this video a LIKE to support my channel! Also check out my entire playlist on Trading Options here!
ruclips.net/p/PLscTZuOqKWIxSZzy4ObKWDznEsCot_1HU
It is the best video found in RUclips on long straddle, strangle. Specially in the wake of recent significance price movement of FAANG stocks, fed interest hike looming large, huge acquisitions etc.Thanks Jake takin onus of educating the mass.
You are very welcome Amar!
Nice explanation. You got right to the point and then provided further details and strategies.
What about doing this in a day trading manner on something like Tesla, SPY, etc? Do a strangle at start of day close the losing side and let the winning side run or just see where it's at end of day?
Great video! You’re able to break complicated information down into simple explanations. Love it… I subscribed!
Yeah ive been doing these a long with credit spreads your videos are super helpful thanks Jake
Thanks for watching and for the comment crippledgenius! Cheers!
I really like your videos on advanced options strategies Jake! You have a good way of explaining them.
Thanks Misael! More to come!
Awesome! Thanks for continuing to pump more information to educate everyone.
Thanks for watching Walter! I try my best! Cheers!
Those strategy would seem to work well on TSLA since the stock is all over the place, would you agree ? Thanks for this very wegood demonstration.
Depends on the volitily.. If volitility is high and the stock doesnt move then you will lose your ass
Very well explained. Will be checking out your other videos.
Amar Das
1 second ago
It is the best video found in RUclips on long straddle, strangle. Very useful insight on the strategy, Specially in the wake of recent significant price movement of FAANG stocks after earnings , fed interest hike looming large, huge ongoing acquisitions etc.Thanks Jake taking onus of educating the mass.
What would be the ideal expiry date for buying long straddle options? Is it just after the earnings or something much further in future after earnings
These are positive vega strategies. Even if the underlying doesn't move, you'll still make money from IV expansion. However, it is still difficult to guess which stocks will move prior to earnings. Use long vol leading up to earnings, then short vol for the crush. Great video.
Thanks Jake to make this video. I have question lets say today 28/06/24 SPY rose to 550 and then all the way down to around 544, If the strike price would around 547, does it mean it could be possible to make profit in both side with straddle strategy? once it hit 550 sell call and then wait once it went down to 544 sell put option to make profit from both direction, is it possible with that strategy? never done, want to learn and apply.
what he probably didn't explain very well in the video is that the mentality of these two strategies is that you don't care which direction the price is going to move. What he did say is that these strategies aren't very good if you know there isn't any news to move the price in any significant way. Why? because if you were holding calls and they made you money, then you were going to sell them and buy puts on any price retracement, then you didn't really need the strategy in the first place. BUT, if news breaks and the price starts to swing wildly, then these strategies are great because the hope is that the price will move past a point where one option covers for the other. (and you don't care which one)
Good work ! Clean precise explanation 👌
If you currently holding a stock short, can you sell a put to achieve same idea as a covered call?
Good points. I trade straddles and strangles often, when they work they are great, but....when they don't holy cow! Needless to say I am looking for a new strategy.
Did you find it? The new strategy? For me, long straddles appear to be the most successful options strategy. I'm here just to check if I'm missing anything.
Great content sir❤
I do these on the SPY every single day.. I just go 1dte and sell first thing the next morning.. most days I will lose 20 - 40 $ but on the days where SPY moves like 5 - 10 $ I will make like 1000
great explanation- thank you
Hi. You are releasing great videos. Why did you stop?
As for the strategies, when do you buy the CALL and PUT? Is it a day before the earnings?
Love the video, got confused by the Apple stock price? You must have made the video a month ago? Unless I took a nap and apple dropped to 149 at the time of doing the video today? But you got the long call on Apple in your account and I live that call so you must have done it a month ago?
Hey Carlos! Yeah, I filmed this video 3 weeks ago and scheduled it for upload when I was in the field for my Air Force job. I can't make timely videos when I post out for a week at a time. Cheers!
Can I get rid of one of them before goes to 0 even it’s far away from the current market price? I don’t have enough money to exercise option.
Hi Jake, what happens if I didn’t close my strangle options? And it was expired without execution my put or call options?
Thank you
excellent video!
thanks Jake
Thanks a lot, ❤
Ahmed from Bahrain 🇧🇭🤚🏾
Great video, one thing that kind of puzzled me is, you have said that this strategy is something you would not do, because of the chance of success not being high, what is your recommendation? which strategy is better?
Hey CP! I think it's better to look at the company's fundamentals and technicals and then just decide if it is going up or down. Buy calls if you think it is going up or buy puts if you think it is going down. Cheers!
Hey Jake, which attributes do you find useful to make that determination? P/e ratio? Market Cap? Dividend Yield? Any videos or books that you can recommend?
Let's go Jake! 😃
Thanks Ruben! Cheers!
As the stock moves is the price also effected by Delta?
Hello, out of the two straddle and strangle, which one makes money faster?
This is an impossible question to answer as it depends on the stock and its performance.
But why not sell covered call/puts to reduce the initial investment.
Less reward?
Jake. ASPS just finalized their pointillist deal. I think you mightve closed too early. Any chance you would buy back in at these levels?
Hey! Nah, they got a great valuation for the sale of pointillist. That is cash to keep them going. But in the end, I just don't see their mortgage foreclosure business recovering in 2022. Home prices only go up, haha.
@@JakeBroe I closed as well on the video you made selling asps. Thank you for your insight and invaluable knowledge. Amazing work Jake.
Chapters on your videos would be helpful.
Let's see an update for HCI and COF.
Hey DM! I mention them in my most recent videos on $GD and $HCA. With HCI, nothing has changed. We are just waiting for the details of the IPO. With COF, all the financials are selling off because people think interest rate hikes will be delayed because of Omicron. I don't see that happening and I think strong earnings in Jan will bring COF to all new highs.
The only risk I see is the Vola crush right after earnings are out.
IV crush and Time decay will make you cry. So do opposite!!
do u mean a short strangle and short put? and why? thanks
Now these days you don’t need earnings hahah literally any day can move up or down drastically
Hello great videos Jake. Do you have any videos on short straddles and in particular for me short strangles please? many thanks
If you don't care for straddles and strangles, what are your favorite choices?