Market Measures

Monday – Friday | 9:00 – 9:20a CT

Is Buying Options Profitable?

Market Measures

We often talk about selling options, but is buying options profitable? In this segment, we will look at if buying options is a viable strategy.

The Study The Results
  • Even when managed early, both the straddles and strangles were not profitable.
  • When managed at 50% the strangle had a win rate of 33% and a negative average profit
  • When managed at 25% the straddle had a win rate of 50% and a negative average profit

Although long premium looks attractive in a low IV environment, long straddles and strangles show poor results dating back to 2005

Market Measures More installments

See All »

Latest tastytrade Videos As of October 18

Most Shared From the last 30 days