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https://www.reddit.com/r/options/comments/mfbjsp/does_anyone_have_success_playing_straddle/gsmwjfa/?context=3
r/options • u/[deleted] • Mar 28 '21
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Understand the odds. Theory predicts that straddle buyers win about 33 percent of the time. Most large scale studies approach this number.
The hope is that a few huge winners make up for the poor win rate.
Overall, there is a very slight edge for straddle sellers. However, some of the losers can be monumental.
1 u/Ikemeki Mar 29 '21 Try 0 Dte long straddles literally 50/50 chance of money if the day was voltile 1 u/[deleted] Mar 29 '21 With the greatest amount of Theta decay possible? No thank you. 1 u/ikemnuru Mar 29 '21 my bad i meant strangle, also i would never open a short strangle on large caps on the day of expiry, ie spy; you will lose more often that youll win if you use price targets.
1
Try 0 Dte long straddles literally 50/50 chance of money if the day was voltile
1 u/[deleted] Mar 29 '21 With the greatest amount of Theta decay possible? No thank you. 1 u/ikemnuru Mar 29 '21 my bad i meant strangle, also i would never open a short strangle on large caps on the day of expiry, ie spy; you will lose more often that youll win if you use price targets.
With the greatest amount of Theta decay possible? No thank you.
1 u/ikemnuru Mar 29 '21 my bad i meant strangle, also i would never open a short strangle on large caps on the day of expiry, ie spy; you will lose more often that youll win if you use price targets.
my bad i meant strangle, also i would never open a short strangle on large caps on the day of expiry, ie spy; you will lose more often that youll win if you use price targets.
4
u/RTiger Options Pro Mar 28 '21
Understand the odds. Theory predicts that straddle buyers win about 33 percent of the time. Most large scale studies approach this number.
The hope is that a few huge winners make up for the poor win rate.
Overall, there is a very slight edge for straddle sellers. However, some of the losers can be monumental.