Noobie Question

O

oshea1690

Fairly new to options trading - doing mostly paper trades at the moment. On etrade, placing an order on a standard straddle gives the option for price types at market, net debit, net credit, or even. I was just wondering what exactly the difference is in placing an order on those 4. Thanks for the help!
 
If you are buying a straddle then you can only place it at net debit, as you are paying.

If you were selling a straddle then you would enter a net credit.

At market is pretty self-explanatory.

Even is when you are simultaneously buying and selling options then even means that the amount you pay is equal to the amount you receive.
 
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