How To Trade Straddles And Strangles To Profit In Options Trading
In this video on Straddles and Strangles, I have shown how to identify Trend & Momentum in Stock Market through Straddles and Strangles and then knowing how to use this in Options Trading to Profit Consistently. I have begun this video by giving a brief overview of Straddles and Strangles (buying call option and put option simultaneously) and I have then explained how Straddles and strangles are helpful in Range bound market, Trending market and Momentum driven trending market and why you should be tracking this on consistent basis.
While straddle and strangle strategy can be created based on Option Greeks and prevailing market conditions, what I am going to show you here is based on charts. This will help you identify precise moments when you would plan for a trade based on what Straddles and strangles suggest. I have then explained relevance of straddles and strangles with respect to weekly options and monthly options.
I have then explained in detail role of volatility in straddles and strangles. I have also explained why one needs to take note of Price action, Trend bias and Implied volatility cycle when it comes to buying or writing Straddles and strangles. I have ended the video by giving out 3 specific Implied volatility rules when it comes to buying and writing straddles and strangles.