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Why 45 day Straddles

Market Measures

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tastytraders like to sell straddles with 45 days to expiration and manage the trade at 25% of the credit we receive. In an attempt to optimize the straddle, we tested performance with longer trade duration.

We tested Straddles with:

  • 45, 60, 90, 120, and 150 DTE
  • Holding to expiration
  • Managing at 25% Max Profit

In both cases, holding to expiration and managing the trade at 25% of the max profit, the 45 day to expiration Straddle outperformed longer duration trades.

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