Straddle on options.

Discussion in 'Options' started by GotherL, Nov 7, 2020.

  1. GotherL

    GotherL

    Most of the information I am getting from google tells me it has to be on same expiry date and strike price. I don't get why you cannot just simply buy a call and put at different strikes and expiry date?
     
  2. Straddle is same strike p & c. Strangle is different strikes. You can use different expiry dates, but deltas, thetas, IV, etc are likely to be different.
     
  3. You can do whatever you want to do! However, different strikes and different expiry's are NOT the definition of a Straddle!
     
    Apologetik, Robert Morse and GotherL like this.
  4. GotherL

    GotherL

    Ok thanks, that what I needed to know since a put on the same strike price as a call has a higher premium which I can't afford to get in.
     
  5. If you have TOS for a broker maybe you don't need this, but you can learn a tremendous amount about how options work with this free tool. It is an EXCEL add-on. It's been around for years and years. Basic version is free:

    https://www.hoadley.net/options/strategymodel.htm
     
    taowave likes this.
  6. taowave

    taowave

    Give an example.It will be much more helpful.It sounds like you are looking at a high dividend stock.