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What's Straddle Binary Options Strategy?

Discussion in 'Advanced Options Strategies' started by Kaitlin, Aug 30, 2015.

  1. Kaitlin

    Kaitlin Forum Member

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    With straddle strategy a trader would initially place a call and a put option on an asset. The difference here is that the trader needs to watch the movements of the asset very closely in order to ensure he knows when to place the call or put option on the asset.

    For instance, let’s say a trader wants to place a binary put option on the NASDAQ market index that is trading at 15,111.00. The trader believes that the value of the index will fall in the next few hours. So, he would execute a put option on the NASDAQ and then as soon as it starts to show signs of declining further, would place a call option on the index. This way the trader can take advantage of the value fluctuations of a certain asset.
     

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