Introduction In the dynamic realm of forex trading, where market movements can be as unpredictable as they are enticing, traders often seek innovative strategies to capitalize on volatility. One such strategy that has garnered attention for its ability to thrive in uncertain market conditions is the Straddle Forex Strategy. This article delves into the...
In this post, I will start from the example and then write the definitions. Our example will be on Boeing (BA), a hypothetical analysis might be that BA was trading sideways for more than half a year. Previous to that BA was down in price for more than 50%, also there was a rally of 100% between May and June. The volatility in the markets starting to rise, due to...
Whether you "put on" the straddle or "leg in" to it, all straddles are legged out of. In this case we offloaded the puts we purchased 2 days ago for a loss, and are now holding the calls in an attempt to let our directionally correct side appreciate. --- I have an issue with this strategy --- The idea is that we are taking advantage of the delta valuation of...
In the chart, you see the strangle strategy when sold, I will show what will happen if the implied volatility changes, you can see this strategy being bought in the next post. You can come back to this post and watch how things play out. As a rule of thumb, strategies are sold when implied volatility is relatively high and bought when implied volatility is ...