6min chapter

Chat With Traders cover image

243: Moritz Seibert – Extreme Edge: Exploiting a Structural Inefficiency

Chat With Traders

CHAPTER

Strangles and Straddles - What's an Example?

A staddle is the combination of a call and a put option with the same strike price, in the same maturity. A strangle is essentially the same thing, but with different strikes. The spretched was designed in such a way that it would show me the position that i needed to put on. It could be a 12 thousand 500 strike put and a 13 thousands 500 strike call. That is a strangled. But because one is a put and the other one is a call, they have opposing deltas. So i had no business in forecasting the direction of the market. I'm very bad at doing that. so i don't want to have a delta position. When you

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