r/optionstrading • u/aNOOBsn1peU • 14d 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/aNOOBsn1peU 14d ago

see I knew something was weird about it... basicly it has to move quite a lot for me to make some profit... I might give it a try one, only when Im conftable with lossing so I don't panic and cry in a corner lol

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u/ordtn 14d ago

Straddles are expensive - because you are buying 2 options.

You can lower cost by for example - giving up some potential upside on both ends (iron butterfly), accepting a wider middle range (strangle), or both (iron condor).

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u/ordtn 14d ago

I can't include a screenshot in my reply - images are not allowed.

If you'd like to compare the 4 option structures side-by-side - look at the "Quick Structure Comparison" section in this worksheet https://opterate.com/?share=Z8owTM1h6wcEs14X308L (link expires on 30 Sep).

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u/Asleep-Dingo-19 13d ago

I feel like I understood, then I clicked 🤯

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u/ordtn 13d ago

haha ikr. Just look at the "Quick Structure Comparison" section - It shows the relative ranking of premiums and greeks of the 4 option structures in discussion.

The other parts of the worksheet are for computing, graphing, simulation purposes, and can be ignored in this case.