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What I was also looking for was a straddle cost vs stock price graph for a given time. That is for a fixed stock price as of today, or a given day in the future, what the straddle cost would be for different strike prices. I understand that going deep ITM for call/put would raise the price, so I...

Can you please elaborate on this? Or point me to some resource that can help me understand this better? Thanks!

My question was not about the underlying in any way. My question was is this a strategy that has been discussed/known. Because I felt based on my limited experience dealing with straddles for 2 weeks, that keeping it close to the stock price seemed manageable and with that I could hope to keep...

No, I sold straddle. Like I said, I own NIO and I earlier sold call at I think 7. The stock shot past it, and I realized I did not want to sell the stocks. So I rolled it up a few weeks, but took a loss. To compensate for the loss, I sold a put at the same strike price as well. Now my intention...

Sorry for the late responses here. I am new not just to options but to elite trader as well. I didn't realize I wasn't getting email notifications for responses.

Thanks! But as I posted in my response on one of the posts above, I had sold a covered call at strike price 9, and with the stock shooting up I was trying to avoid selling it at 9 or taking a loss on the transaction. I did have some additional funds in the account, and don't necessarily need to...

Why lower volatility? It's also about time, right? And that's the main idea that I was thinking. I have straddle at say 13, and if the stock moves up, I'd move the straddle up to 14 (same expiration date). If moving up does not cost me much then I should be ok? Also note that I am ok selling my...

Trying to gain experience to learn from it!

The reason was that I own NIO and had been selling covered calls, and rolling them up as needed. However the stock shot up and I did not want to sell the stock. Instead I decided to roll up at a loss, and to compensate for the loss sold the put. The idea is that I am ok selling the stock at a...

I have a pretty basic question about short straddles. Would the following strategy work? My guess is no because I didn't find any source talking about it online, but would like to understand why. Sell an ATM straddle a couple of months out (where I own the underlying stock and have cash...

Sure, they may influence my decision. But that is secondary. I am just trying to understand these probabilities.

Sorry didn't realize I didn't mention that. I was looking at AMZN.

Sure, I guess that's the sense I am getting. But it would still be good to understand these probabilities for reference, even if I don't use them in my decision making.

That makes sense to me. But going by that definition, anything that's ITM should have 100% probability of touching, no? But put like I said has a probability that I find it difficult to correlate with the call side probability.

I would expect these 2 probabilities to match: Probability of Touching (shown in the option chain table) and probabilities shown in the Probability Analysis graph -- but they don't. As of right now: 2500 call expiring 24 Apr 2020 - Probability of Touching is 26.77% But from Probability Analysis...