Mar 9, 2017
Today we are looking at a long straddle. You can find this in The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle.
In this episode, Brian discusses:
- A review of the long GPS put spread that was adjusted into a butterfly
- How was the butterfly constructed, and for what price?
- What has happened since the adjustment?
- What to do now?
- Remember, butterflies love time decay
- Moving into the healthcare sector, implied volatility is low in Abbot Labs
- Where is 30-day IV in Abbott Labs?
- When does ABT announce earnings?
- Putting on a 35-day straddle
- Picking strikes
- What is the cost?
- What about a fig leaf? (aka leveraged covered call)
- Picking the strikes
- What is the cost?
Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.