When selling Straddles, we collect the maximum premium for that specific option chain.
Is that premium enough to cover the actual move netting a positive result? Our Research Team ran a study to find out!
Actual moves in the underlying, on average, amount to 63% of the expected move. The Straddle credit, on average, covers 73% of the expected move. Historically, the Straddle results saw more consistent profits than long or short stock.
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