The financial markets have experienced strong volume growth in the short- dated index option arena. This paper explores the performance of short-dated index options versus the subsequent price move in ...
Buying a straddle profits from significant price swings regardless of direction. Selling a straddle profits when the stock price remains stable near strike price. Straddle buying is risky before ...
One of the common beliefs in the option industry is that over a long period of time option sellers will profit. They will hit some speed bumps along the way, but option prices are expected to ...