Straddle on options.

[GotherL]

Most of the information I am getting from google tells me it has to be on same expiry date and strike price. I don't get why you cannot just simply buy a call and put at different strikes and expiry date?

 

[Option_Attack]

Straddle is same strike p & c. Strangle is different strikes. You can use different expiry dates, but deltas, thetas, IV, etc are likely to be different.

 

[stepandfetchit]

You can do whatever you want to do! However, different strikes and different expiry's are NOT the definition of a Straddle!

 

[GotherL]

You can do whatever you want to do! However, different strikes and different expiry's are NOT the definition of a Straddle!

Ok thanks, that what I needed to know since a put on the same strike price as a call has a higher premium which I can't afford to get in.

 

[Option_Attack]

If you have TOS for a broker maybe you don't need this, but you can learn a tremendous amount about how options work with this free tool. It is an EXCEL add-on. It's been around for years and years. Basic version is free:

https://www.hoadley.net/options/strategymodel.htm

 

[taowave]

Give an example.It will be much more helpful.It sounds like you are looking at a high dividend stock.

Ok thanks, that what I needed to know since a put on the same strike price as a call has a higher premium which I can't afford to get in.