Oil option traders are bracing for increased volatility by buying synthetic Straddles: Long OTM Call + Short Future.
Being market-neutral, it’s a pure volatility play: it earns on price action in either direction. Once it hits the profit target, owner can close it or manage
This isn't a unique story. Such portfolios frequently appear in the market when favorable situations arise, including those that are 'graphically convenient' (look closely at the chart and answer the question: will the price linger at this level for long? Probably not, it'll move somewhere). Options allow you to profit from these chart setups without worrying about the direction of the price move. Cool, right?
Bottom line:
this post is primarily educational, rather than sentiment-revealing. However, we also shouldn't ignore such 'market-neutral portfolios' in our analysis.▶️ If the professional players aren't sure where the market is headed next, maybe we shouldn't overstate our own humble abilities either.
Being market-neutral, it’s a pure volatility play: it earns on price action in either direction. Once it hits the profit target, owner can close it or manage
This isn't a unique story. Such portfolios frequently appear in the market when favorable situations arise, including those that are 'graphically convenient' (look closely at the chart and answer the question: will the price linger at this level for long? Probably not, it'll move somewhere). Options allow you to profit from these chart setups without worrying about the direction of the price move. Cool, right?
Bottom line:
this post is primarily educational, rather than sentiment-revealing. However, we also shouldn't ignore such 'market-neutral portfolios' in our analysis.▶️ If the professional players aren't sure where the market is headed next, maybe we shouldn't overstate our own humble abilities either.
Verbundene Veröffentlichungen
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Verbundene Veröffentlichungen
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.