Covered Straddle

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Dictionary Says

Definition of 'Covered Straddle'

An option strategy that involves writing the same number of puts and calls with the same expiration and strike price on a stock owned by the investor. A covered straddle is a bullish strategy.
Investopedia Says

Investopedia explains 'Covered Straddle'

The covered straddle strategy is not a fully "covered" one, since only the call option position is covered. The put write position is "naked", or uncovered, which means that if assigned, it would require the option writer to buy the stock at the strike price. While gains with the covered straddle strategy are limited, large losses can result if the underlying stock tumbles to levels well below the strike price at option expiration. If the stock does not move between the date that the positions are entered and expiration, the investor collects the premiums and realizes a small gain.
Search results for

'Covered Straddle'

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    ... "Qualified covered calls" have ... of-the- money) with more than 30 days and less than
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    ... Either scenario can offer a potentially profitable trading opportunity via the
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  • Series 7 Study Guide - Derivatives - Straddle Option Strategies ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/straddle-option-strategy.asp
    ... Email Email. Print Print. Order Reprints Reprints. Feedback Feedback. Derivatives -
    Straddle Option Strategies. ... It is called a straddle. ...

  • Tips For Series 7 Options Questions

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    ... Straddle Strategies and Breakeven Points Questions regarding straddles on the Series
    7 tend to be limited in scope. ... A straddle always has two breakevens. ...

  • 10 Options Strategies To Know Slideshow | Investopedia

    http://www.investopedia.com/slide-show/options-strategies
    ... value. (For more insight, read Covered Call Strategies For A Falling Market.).
    2. Married Put. In a ... Work.). 6. Long Straddle. A long ...

  • Options Greeks: Gamma Risk and Reward | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks5.asp
    ... Long Straddle, Positive. Short Straddle, Negative. Long Strangle, Positive. ... Calendar
    Spread, Positive. Covered Call Write, Positive. Covered Put Write, Positive. ...

  • Series 7 Study Guide - Derivatives - Option Positions ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/option-positions.asp
    ... Whether a contract is covered or uncovered has a great deal to do with
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  • An Introduction To Weekly Options

    http://www.investopedia.com/articles/optioninvestor/11/intro-weekly-options.asp
    ... Also in 2010, a popular trade emerged among retail account holders where they wrote
    covered calls using weeklys. What Can You Trade With Weekly Options? ...

  • Series 7 Study Guide - Derivatives - Other Options Strategies ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/bearish-bullish-options-strategy.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    Writing covered calls above market: Your client buys the stock - at the ...

  • Options Greeks: Theta Risk and Reward | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks4.asp
    ... Long Straddle, Negative. Short Straddle, Positive. Long Strangle, Negative. ... Calendar
    Spread, Positive. Covered Call Write, Positive. Covered Put Write, Positive. ...

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