ATM SPX Straddle

Discussion in 'Options' started by FSU, Nov 8, 2016.

  1. FSU

    FSU

    The weekly at the money Spx straddle (expiring tomorrow afternoon) went out at 40.5 bid. They are essentially pricing in a 40.5 move in the SPX tomorrow.

    Don't remember seeing a straddle that high with one day left in some time.

    Buy it or sell it? (I did neither)
     
  2. Robert Morse

    Robert Morse Sponsor

    YES.
     
    FSU likes this.
  3. FSU

    FSU

    Wow, guess it was a buy
     
  4. Robert Morse

    Robert Morse Sponsor

    YES? :(
     
  5. water7

    water7

    trader can long SPX nov/dec strangle/straddle 2 weeks before the election day
    and close it out 1-2 days before the day

    (nov VIX around 13 on oct 25th -> free lunch)

    --
    no, i didnt take it, i have something else in mind :)