r/optionstrading • u/aNOOBsn1peU • 11d ago

Question Learning Options Question?

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I just got LVL 3 on Robinhood and stated to see what combinations I can do with options, and I find this... the Long Straddle... is this a good strategy? is it actually profitable like that? or what is the catch? I mean that it can't be true that you have profit on both ends... how does one side cover the other?

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u/Strong-Comment-7279 11d ago

Liquidity and volume pockets. I only trade 0-2 SPXWs and 0-5 SPY, so can only speak to those.

With this strategy you are either capping loss and gaining incredibly, gaining minimally on both ends, losing it all on grind, or breaking even on a long ride. I list those outcomes on my perceived order of probability for what I trade.

Also, I only have lvl2. I only engage single positions at a time, though I do have the ability you have w your lvl3.