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The Strangle Options Play: When & How To Use This Trading Strategy
In my column last week, I showed you how to use straddle options to take advantage of market/stock volatility when the direction is uncertain.
This week, we hop over the fence to the straddle’s sister strategy – the strangle options play.
To refresh your memory, a straddle is when you essentially bet on both sides of a trade by using options that have the same strike price and same expiration date.
For example, if you like Bank of America (NYSE: BAC), currently trading around $12, you could buy a $12 call option and a $12 put option. In doing so, the goal is that…
11Jun2009 | Smart Profits Report | 1 comment | Continued
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