Overview
Options traders never suffer from a shortage of strategies to employ as they navigate the markets. Whether you are a student with diverse investment objectives for both the short-term and long-term, are simply seeking a way to play earnings announcements, or are working full-time and cannot trade actively during the market day; the low-intensity trading style offered with Trading Straddles & Strangles could be the strategy for you.
Trading Straddles and Strangles provides an ‘any-directional’ trading strategy for stocks approaching an earnings date. The strategy offers an earnings play and is designed to benefit from increasing volatility in a certain part of the earnings cycle. The trade is unbiased as to underlying price direction, so a big move either way has the potential to be favorable. As such, this strategy benefits from increasing volatility, OR large price movement OR both. This results in trades having limited risk and potentially unlimited positive returns. In addition, a low option approval level is required making this a straightforward strategy to set up and maintain.
OTA’s instruction incorporates a step-by-step rule-based trading approach, covering techniques for identifying suitable candidates, as well as the use of key Options tools for analysis and trade management. It is delivered using live market strategy sessions with key interactive lab exercises.
Note: This class provides information about Straddles & Strangles and offers instruction on how to trade them.
This course will cover:
- How to take advantage of the market’s predictable reaction (increasing volatility) to the anticipation of company earnings announcements
- How to generate returns from the underlying price change accompanied by volatility
- How to create trade setups and maintenance
- Identify the advantages and pitfalls associated with Straddles & Strangles
- How to use this strategy in IRA or Non-IRA accounts
- How to use charting techniques and the IV gauge
- How to understand, analyze and properly execute the complete Straddle/Strangle strategy
Audience
This course is designed ideally for students who have completed OTA’s Core Strategy and Options Trader class. Traders with Options experience and/or prior Options education will benefit from learning these strategies.
Prerequisites
Core Strategy & Options Trader courses are required.
Duration
Approx. 6 hours of live instruction & 1, 90-minute live session delivered weekly for 4 weeks post-class
Access
6-hour class when purchased includes 4, 90-minute application sessions accessible from the same course. Unlimited Retakes.
Class Type
Live Online class with Application Sessions