straddles and strangles are my favorite type of play. the idea is to buy calls and puts on a stock that is likely to make a major move...up or down doesn't matter...all that matters is that the stock moves. most obvious plays are earnings plays...stocks with a history of strong moves after posting earnings. another type of play that works very well are stocks that are up for FDA approval with different drugs or therapies.
after all this time on si i have not seen a thread that focuses on this often very lucrative play. i would like to use this thread to educate traders (if i can) to play straddles and strangles and to offer a place to discuss possible upcoming opportunities.
everyone is welcome, just be civil. |
