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RE: Statistics: why the stock market is the easiest market to trade. Hindsight is always 20/20.

FX is death by a thousand cuts. Open position with stop loss. Your stop loss gets hit. Position reverses and runs in your direction without you. Back to #1.

Depends on the traders view of the underlying.

More bang for your buck - in most cases.

The Strangle is more profitable. Using real quotes and common sense in selecting the strikes for the strangle and based on your 100 XYZ example and $5.00 debit for the straddle. MSFT at $101.63 MSFT July13 2018 100.00 call ask $3.25 MSFT July13 2018 100.00 put ask $1.36 Straddle Total Debit...

The example you posted is purely a directional trade. Again using your example a strangle would blow the straddle out of the water when it comes to profit.

Straddles/Strangles are more of a directional trade - rather than a volatility trade.

New image to better visualize the straddle versus strangle. The option definition is backwards to what a straddle and strangle is. Stock at $100. Straddle $90 put and $110 call. Strangle $100 put and $100 call.

TSLA earnings would be a good example. The options were priced for about a 8% move - next earnings will be the same. Lets put TSLA at $300.00 before earnings. The trader is bullish and expects TSLA to go up after earnings and the weeks after. Earnings are on Wednesday. Sell the $320.00 calls...

Looks like your 20 contracts are almost the entire market for those options. Very wide bid/ask spread. IMO ...... it might be best to ride this out to expiration. ITM auto exercise both legs. OTM keep the premium. Quotes from BMO Investorline - after market close.

$10,000 USD minimum to open account. $2,000 USD minimum to trade.

Pre-earnings trade Sell expensive pre-earnings option close to expiry. Buy the same strike option further to expiry. You end up with a relative cheap entry for a directional trade.

Strangle should be called a Straddle and visa versa. An option straddle has the legs at the same strike. But in the image below a straddle shows the legs far apart. Straddle An option strangle has the legs further apart than the straddle. But in the image below a strangle is a tight...

Could the replies also have links? I would like to visit these sites.

I doubt any broker would wet their pants over some account.

Look into Strangles instead. Each leg is 1-strike or more OTM. They are cheaper. And in most cases more profitable than the Straddle.

Could you post an example?

Could you post an example?

If volatility explodes there will be zero impact on margin requirements. Margin requirements will not expand.

Volatility doesn't affect margin. Volatility affects the price of the option.