Tuesday, February 28, 2012

Video-Short Straddle Option Trading

Before reading the articles and checking the video tutorial on Short Straddle Option Trading, option traders should note that taking short straddle is highly risky, as well as costly because of high brokerage charges and comes with high capital requirements in terms of margin money requirements. All this for a limited profit potential and unlimited loss potential. Trading short straddle should be with caution.

In our article, Short Straddle Option Trading Explained with Example & Payoff Functions we had covered the details about Short Strangle Option trading in a set of detailed articles. Readers are requested to check those for going through a step by step process to understand the Short Straddle Options trading.
Here we are providing the same steps in a video which explains the Short Straddle Option Trading

Short Straddle Option Trading Video




Options traders should note that trading short Straddle involves a significant level of risk. You are betting for a limited amount of profit by taking much larger risk exposure. One is advised to keep a strict stop loss on both the underlying stock prices and the option prices.

See Related: Video-Long Straddle Option Trading

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