IBKR Podcasts Straddle Strategies: Smart Play or Risky Business?
Dec 1, 2025
Join options traders Dmitry Pargamanik and Will McBride from Market Chameleon as they dissect the ins and outs of straddle strategies. They delve into when to buy or sell volatility and share essential filters for identifying optimal straddle candidates. The duo highlights various event-driven catalysts that can ignite option volatility beyond earnings, alongside practical insights into managing risks for short straddles. Listeners will learn to navigate time decay dynamics and the importance of qualitative factors, like biotech risks and corporate events.
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Straddle Is A Bet On Magnitude
- A straddle combines an at-the-money call and put to remove directional bias and instead bets on magnitude of movement.
- The strategy profits only if the underlying moves enough to cover the combined premium of both options.
Buy Low IV, Sell High IV
- Buy straddles when you expect implied volatility to rise or when you expect a large move.
- Sell straddles when implied volatility looks expensive relative to your forward volatility estimate.
Screen With A Clear Thesis And Liquidity
- Use filters tied to a clear thesis when screening straddle candidates, such as upcoming earnings or events.
- Always check option liquidity and bid-ask spreads to ensure clean price discovery and execution.