Market Measures

Monday – Friday | 9:00 – 9:20a CT

Managing Straddles at 25 Percent

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Managing straddles is a bit of a different game than strangles because it is a more aggressive strategy.

Therefore we like to manage straddles at a specific profit target that is more conservative than other strategies.

  • Sold ATM straddles and managed them at:
    • 25%, 50%, 75%, Expiration
  • Compared results when IV Rank over/under 50%
  • S&P 500 ETF (SPY) - 45 DTE options
  • 2005 to present

We find that 25% of max profit as a management point has shown the best success rate and daily P/L out of all the other management points. This management point happens to be around 25-30 days to expiration.

Market Measures More installments

See All »

Latest tastytrade Videos As of July 11

Most Shared From the last 30 days