by Henry Liverman | May 28, 2021 | Market Definitions
An options trading strategy designed to protect an investor from drastic drops in the price of a stock. The investor, while holding a long position on a stock, purchases an at-the-money put option of the same stock to protect themselves against depreciation in the...
by Henry Liverman | May 28, 2021 | Market Definitions
A similar strategy to a straddle but with utilizing options at different strike prices. A strangle options strategy is achieved when an investor has a position in a call and a put option with different strike prices but with the same expiration date and underlying...
by Henry Liverman | May 28, 2021 | Market Definitions
An options trading strategy involving a trader purchasing a long call and a long put on the same underlying asset at the same strike price and with the same expiration date. The objective is to profit from a very strong move in either direction by the underlying...
by Henry Liverman | May 28, 2021 | Market Definitions
A trading strategy attempting to profit from the low volatility of an underlying asset. An iron condor options strategy consists of two puts (a long and a short) and two calls (also a long and a short) along with four strike prices, all with the same expiration...
by Henry Liverman | May 27, 2021 | Market Definitions
An options trade that uses 4 different contracts as part of a wider strategy to benefit from stocks or futures prices moving within a defined range. It is constructed similarly to a short-straddle trade, with a long call and long put option purchased for protection. ...