Options straddles chosen due to their current low implied-volatility compared to the historical average (explained further).
Options straddles chosen due to their current low implied-volatility compared to the historical average (explained further).
What is Straddles.net?
Here at https://straddles.net you can find hand-curated lists of straddle trade ideas based on different strategies (explained further below).
Data is pulled in from various sources and combined in an easy to search and filter table view, available for free on this page.
If you are looking for low-hanging-fruit straddle trade ideas for options then these are worth checking out.
Always do your own research though - it is best to only use these ideas as a starting point - please check out the disclamier at the bottom of this page too.
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Strategies Explained
Several different strategies are used to find these straddle ideas (more to be added soon) that can be switched between using tabs above:
Low IV Rank LONG
These are stocks that have came up in a search of the "lowest IV rank" and then manually checked against it's historical IV chart.
Traders are not currently paying the sort of premiums they historially have done in the past to bet on the stock moving in either direction. You can currently place a bet on the price moving in either direction cheaper than usual with a straddle.
An ideal expiry is chosen based on the which timeframe is experiencing the biggest dip in it's IV compared to the previous 3 months of activity - with priority given to longer dates if possible. You can see the dip for yourself by expanding the idea in the list by clicking on it.
The chosen strike price is the current closest to the actual futures price at time of posting.
Profit (I use a 40% take-profit) is made when the IV increases and/or the underlying price moves in either direction.
High Put-To-Call Ratio LONG
It starts by looking at which stocks are currently experiencing the largest difference in puts vs calls and expecting that something big will happen next.
A large number of puts vs calls suggest some traders know something or that the market is reaching exhaustion and is due for a rebound.
Usually the implied volatility is increasing alongside this activity but there could still be opportunities as the price is coiled strongly and (statistically) could move quickly in either direction.
This can be the opposite of the "Low IV Rank" trade and instead of expecting the IV to increase we are banking on the fact that the price will move a lot more than the IV will drop.
The chosen strike price is the current closest to the actual futures price at time of posting.
I personally set a larger profit target as the underlying price moves can be larger but ideally you don't want to stay in long when you are in profit due to the larger IV.