Day: August 20, 2025

Long Strangle Option Trading Explained The long strangle is an options strategy designed for traders who expect a big move in the market but aren’t sure which direction it will take.   Instead of betting up or down, the trader buys both a call option and a put option on the same underlying asset, with the same expiration date but different strike prices. Typically, the call is purchased...

Long Straddle Option Trading Explained The long straddle is an options strategy used when a trader believes the market is about to make a significant move but has no conviction about direction. Instead of picking up or down, the trader buys both a call option and a put option with the same strike price and the same expiration date. This creates a position that profits from volatility. If the...

Short Strangle Option Trading Explained The short strangle is an options strategy used by traders who believe the market will remain relatively stable in the near term. It involves selling both a call option and a put option on the same underlying asset, with different strike prices but the same expiration date. Typically, the call is sold above the current market price, while the put is sold...