Which is better? Long Straddle or Long Strangle?

Discussion in 'Options' started by increasenow, Aug 29, 2011.

  1. Which is better? Long Straddle or Long Strangle? I used to think the Long Strangle was better but now I am thinking that the Long Straddle may actually be. Please share your thoughts and comments.
     
  2. long straddles are higher probability to win...
    more expensive to play....
    and also low IV is key...

    my old friend used to say (always buy straddles and always sell strangles)....
     
  3. rew

    rew

    It depends.

    Like everything else in options.
     
  4. Cottle thinks that a nearest surrounding price straddle has
    the same behavior as 0.67394 (appoximately:) ) strangle.
     
  5. john33

    john33

    I think a strangle if IV is too low + large move is expected, and straddle if just IV is too low.
     
  6. Depends on size of move, time held, IV change... all of the usual suspects.
     
  7. Will it be better for me to sell a strangle (on weekly ETFs) rather than selling a covered call (again weekly)? Comments appreciated.
     
  8. to me, seems way too much cash needed (margin) to actually sell a strangle with less profit potential than actually buy a long strangle?...
     
  9. Only Carnac the Magnificent can psychically divine answers to questions like these.
     
  10. You must have balls of steel to sell weekly strangles, I am a seller but those weeklies seem so cheap to sell. the whole risk/reward sucks.
    Anyway, Which ETF and What options? (if you would like to share)
     
    #10     Aug 30, 2011