How big of a volatility would be worth it for straddles?

Discussion in 'Options' started by Dawnfall, Mar 10, 2023.

  1. Dawnfall

    Dawnfall

    Been trying to learn how to use a long straddle, but I am not sure on how volatile must the underlying be for long straddles to be profitable
    upload_2023-3-10_16-22-57.png
     
  2. ZBZB

    ZBZB

    If you are buying options volatility should be low.
     
  3. TheDawn

    TheDawn

    The price movement on the underlying must be larger than the premium that you paid to buy the straddle.
     
    Dawnfall likes this.
  4. traider

    traider

    Most people don't dynamically hedge so ...
     
  5. Dawnfall

    Dawnfall

    Thanks so much man