Question

Which option model do you think produces the highest success rate?

Which option model do you think produces the highest success rate?

Homework Answers

Answer #1

I think that shorting a straddle is a high profit making idea because this includes selling of call option and put option of the same strike price and these call and put options are almost out of the money so there is a focus upon eating the premium of both the options by the call and put writers so he will be assuming that the share prices are going to stay within a range and they are going to provide the the option writer with the premium amount because once the date of the maturity will be approaching the value of the options which are out of the money are going to be zero.

So I think shorting straddle as a strategy is better option strategy for me.

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