I hope to gain some experience and insight into straddle trades (simultaneous purchase of a put and call, same strike, same expiration) for both futures and stocks in this journal. I hope it can be a joint journal (others can talk about their own trades). I don't plan on doing many of them, at least at first. I'm considering a straddle of SLV (silver ETF) this morning. If you pull up a 1-year chart, you can see that silver's been moving quite a bit. I can imagine it headed up to test 50, or back down to 30. The way it's been moving, I can even say I wouldn't be surprise if it reached either of those two prices by this October. Hence the straddle. I estimate an ATM put and call, Jan 12 expiration, would cost about $450 each for a total of ~$900. Extreme scenarios we may see by October: (1) SLV @ 50: C + P ~ $1225 + $70 = $1295. +$395 (2) SLV unchanged (~40): C + P ~ 2 x $310 = $620. -$280 (3) SLV @ 30: similar to case 1. Exit plan is to get out no later than October (time stop) if no trend develops. Otherwise I will ride whatever minor trendline appears. If I get a good profit up front (first month) I will take partials. Profit taking is my psychological weakness. I'm too greedy. Thus, I will defer those decisions to my wife. I estimated the prices by looking at the last traded prices yesterday. Will verify with fresh quotes here shortly. I estimated prices Jan 12 in October (3 mo. to expiration) by looking at Oct 11 options now.