Long straddles rarely work on the S&P500?

Discussion in 'Options' started by nxt7, Apr 8, 2016.

  1. OptionGuru

    OptionGuru




    IMO ......... Earnings does not provide more of an advantage for sellers or buyers of options compared to non-earnings. The playing field is always level for both buyers and sellers at all times.



    :)
     
    #11     Apr 9, 2016
  2. Bekim

    Bekim

    I believe the only way you can have an edge buying the straddle is with individual equities because you can predict the rise in IV going into a earnings event. I don't think I would ever see a reason to buy a straddle on the SPY.
     
    #12     Apr 10, 2016