Straddle

[carolinesherif]

In a straddle, why there is a limited profit when the stock price goes down

[125mph]

If the stock is currently worth $20, what happens at expiration if the stock is goes to $0? How about if the stock is goes to -500?

[Appro]

You are long put and long call here, so you can put the stock back at the exercise price Okay can your stock price go down below zero ? certainly no ( You can’t take money to buy a stock) so your profit in the down move is limited to zero

[Iprofit4sure]

I recommended buying these a week pre earnings in high beta stocks, especially the ones, you know, that you expect to go to infinity immediately following their press release haha

[125mph]

I recommend taking a long out of the money call option with 2 days till expiration, at about $0.10 a pop, pre-earnings the next day, with high implied volatility. Watch your return be 1000%

[Iprofit4sure]

@125mph

I recommend taking a long out of the money call option with 2 days till expiration, at about $0.10 a pop, pre-earnings the next day, with high implied volatility. Watch your return be 1000%

I’ve entered naked trades like this before at like 1k a piece. Ticker FSLR. : X Not quite 1000 percent but around 600-700 percent.

[125mph]

@Iprofit4sure

I’ve entered naked trades like this before at like 1k a piece. Ticker FSLR. : X Not quite 1000 percent but around 600-700 percent.

that’s not a naked trade! You don’t make that type of return on a naked trade… you juts make some silly premiums without clothes.

[Iprofit4sure]

@125mph

@Iprofit4sure

I’ve entered naked trades like this before at like 1k a piece. Ticker FSLR. : X Not quite 1000 percent but around 600-700 percent.

that’s not a naked trade! You don’t make that type of return on a naked trade… you juts make some silly premiums without clothes.

lol I am losin my mind. 14 more days exactly!