Straddle and Strangle Spread Options Trading System
Your membership to Crestrade will include alerts from the Straddle/Strangle Options Trading System:
|Perfect for:||Traders looking for unlimited profit potential with every trade.|
|Trading Style:||Options Trading|
|Average Hold Time:||1-3 weeks, rarely through expiration|
|Trade Frequency:||1-3/month, max of 4 simultaneous open positions|
|Focus List:||Any stock or index that is likely to breakout quickly and substantially in either direction.|
|Strategy Objective:||Current Stock Price within 1.5% of profitability and low cost of entry|
|Profit Goal*:||25%-100%+ profit per trade based on amount risked (buying power used)|
|Risk Control:||Defined Risk Approach limits loss to buying power used|
|Alerts Used:||Entry and Exit Signals through a Trade Alert Email, Live Trading Room and Trade Forum (demo)|
|Delivery Method:||All can be delivered to Computer, Smart Phone and Tablet via instant messanger and emails|
* Note that 100% of amount risked could be lost on options spreads, and that profits are NOT guaranteed on ANY trade. Please allocate funds responsibly.
What are Straddles and Strangles?
Straddle Spread Defined: An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.
Strangle Spread Defined: An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.
What it means: A Strangle Spread means that you are buying a call and a put option in the same stock, essentially betting that the stock will have a significant movement either up or down. A Straddle is simply a Strangle that has the same strike price for both the put and the call option. You profit when the stock makes a substantial and quick movement in either direction.
EXAMPLE: Take a look at what the order looks like on a Strangle on the stock GOOG where we buy 1 call option with a strike of 300 and buy 1 put option with a strike of 290. The result is a complete trade that gives us a 5.40/contract ($540) DEBIT to our account (for each contract we choose to do).
The price of GOOG at the time of this trade was 297.58.
EXAMPLE: Now look at the profit and loss scenarios that could occur on the trade we entered above. You will notice that if GOOG closes between 290 and 300, we have our max loss of $540. Our breakeven points are 284.62 and 305.47. As GOOG moves away from the center, our profit increases without limit. This is a great trade before expected volatility, such as earnings reports.
Use the zoom-out button to see the unlimited potential, if GOOG really moved...
Get the Power of Expert Analysis on YOUR Side
With Straddles and Strangles, we are going for large profits: When we look for Straddle and Strangle Spread trades, we are looking for stocks that we believe will move significantly more than the options premiums suggest. The result is a trade that has unlimited profit potential, and that increases in profitability as the stock price moves in one direction or the other. The profit points will always be near the current stock price, and the amount of money risked will be substantially lower than the maximum profit on our Straddle and Strangle Options Spreads.
Our options trading methodology gives you the best Straddle and Strangle trades that meet all of the following requirements:
- Profit Points near current stock price -- While we anticipate a large movement in the stock, we do not want to be in a situation that requires that stock to move an incredible amount before you see a profit. In fact, most of our straddle and strangle options spreads will be designed so that you begin to profit when the stock moves as little as 1.5% in either direction.
- Steep Profit Slope -- Straddles and Strangles should deliver high levels of profit to you because once they are in profitable range, the profits continue to grow as the stock moves more and more in that direction.
- LOW max loss -- Our experts understand that options trading is all about controlling risk (limiting losses) and maximizing profits gained from winning trades. Each Straddle or Strangle trade will have a small effect on your overall buying power. In fact, you will be able to trade each of our alerts with as little as $150 of buying power used!
Entry AND Exit Trade Alerts in Real-Time
Options Trading is a skill that can be learned and constantly improved. At Crestrade we believe strongly in the value of education and improving the trading ability of our members. That is why every trade alert comes with detailed analysis that tells you exactly what we are seeing, what we expect to happen, and what you should be watching for.
You will always know exactly where we stand on every trade, every day. We will send you real-time entry AND exit trade alerts via email and our Live Trading Room (Click here for demo) along with our online trade forum to keep you fully up to date on every position. Each alert and update comes complete with an expectations and analysis movie (view demo) that includes entry price limits, stop loss levels and profit targets to insure that you always know exactly what is going on with every open position in your account!
Options Trading Designed to fit YOUR Schedule
Once you receive a trade alert from us, you can be confident that the trade can be made anytime within the next 24 hours. In other words, you will NOT need to be at your computer all day in order to enjoy the full benefits of our Options Trading System!
Straddle and Strangle Spreads are a defined-risk, high-reward strategy that go for big profits when the stock moves in either direction. The Straddle and Strangle Trading System is a part of the Crestrade Options Trading System.