Home Forums Members Forum buying option straddles for FedEx & Adobe

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  • philip_from_calphilip_from_cal
    Participant
    Post count: 56

    Hi Sean,

    Tuesday, Sept 15th, these 2 stocks will report earnings after the market closes.

    What do you think about straddles for these 2 companies?

    Thank you for the advice.

    Phil

    Sean HymanSean Hyman
    Moderator
    Post count: 2846

    I’m not much on straddles because one position is pretty much guaranteed to lose and the stock has to move a ton in a short time to overcome the loss of the other. So, I’m not a fan of buying straddles. I think it’s a low probability trade.

    philip_from_calphilip_from_cal
    Participant
    Post count: 56

    Thank you, Sean. I made some money doing straddles but the following week I ended up giving it back.

    Phil

    Sean HymanSean Hyman
    Moderator
    Post count: 2846

    Straddles are low probability trades over time, in my opinion.

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