Options Bootcamp 23: Straddles

Basic Training: Getting to know the fundamentals

• What is a Straddle? Why would you want to use it?
• Straddle pros and cons.
• Iron Butterflies and Iron Condors are straddles and strangles with protection.
• Gamma scalping is the only way to really make long straddles profitable over the long run.
• Exiting straddle positions is difficult to do effectively. Using straddles pre-earnings

• Scammers love to pitch straddles, saying "Make money in any market condition." Be careful.

Mail Call: Even bootcampers get mail privileges.

• Question from Alan Utchins, Baltimore, MD - I read with great interest the recent article about options trading in the New York Times. The article seemed to contradict everything you've discussed on this fine program. They highlighted several studies that they claimed prove that most options traders lose money. What is your response to this? Is this essentially a hit piece on the options market or does this author have some valid points?
• Question from Optrader - What books would you recommend about options trading (aside from Mr. Passarelli's, of course)?