INSANE PREMIUMS WITH COVERED STRADDLES! (SHORT STRADDLE) | EP. 93

Let's take a look at the covered straddle option strategy. In this video I will talk about what the short covered straddle strategy is and how the covered short straddle works on Robinhood. The short straddle could be a great strategy to use to collect insane premiums every week. Robinhood is an app thats lets you invest in stocks.

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[abuyusuf]

Just for follow up, can you ger ant juicy premium from Ford now? if no, any idea. Thanks for sharing

[scottsomer]

Yes, the premium is VERY juicy BUT understand that one of the options will be IN-THE-MONEY at ALL times so you won't get to keep ALL of it.

[juanpablogalindo-dewitt]

Could you go over the pros and cons of selling a straddle vs doing a butterfly, broken wing, or other neutral strats?

[scottsomer]

I think if take your deltas on each side at 40 or below you have greater probability of collecting all of the combined premium (20 percent probability) but if not (one option in-the-money) you will have more favorable assignment prices, Covered Strangle instead of Covered Straddle

[boostednova]

I guess the key to this is to do it on a stock you want to own! and collect premium while acquiring it

[justinorwen]

How is this any better than just selling puts with 2 contracts?

[urbanmyth]

Ain't this basically a synthetic long position? The only benefit here is capital preservation against bying the underlying right away.

[juliuspereira]

Is there any benefit in combining them into a covered straddle as compared to selling 2 seperate options - 1 covered call and 1 covered put?

[Glitch.-_-.]

can u sell a straddle option in the same day? like a few minutes after u made the contract :)

[shussing]

If VZ is at 52.72 and i place SELL -1 STRADDLE VZ 100 (Weeklys) 7 JAN 22 53 CALL/PUT @1.45 LMT what happens at expiration if VZ hits 53.2?

[coolmagnifico]

Does this guy even respond/answer our questions and queries here?

[mrretired]

you dont have to buy or sell the shares? I think you can close both options before expiry or if one hits your stop loss. either way you will keep SOME premium without having to buy or sell your shares

[scottsomer]

May I suggest that UNLESS you wish to either buy or sell shares at EACH expiration you will want to CLOSE these before they expire

[reelhawksstudio]

Confused about the collateral requirements: you need 100 shares in case the price goes up at expiration AND you need cash in case the price goes down?

[whatsmineandyours]

My $PFE March 2022 $50 calls are down 76%. Please suggest a strategy to cut my loses

[edmandell]

Great Video. This may be a dumb question but why on an iron Condor you only need 1 form of collateral to sell a put and call but on a straddle you need 2 forms of collateral?

[stans]

There is no protection if the stock is on a decline.

[themaskedgoon_gaming]

Finally glad to see you use options strat, such a marvelous little tool app 😊

[Dakippa]

Risk 3000 to make $70? Where do I sign up lol

[hafidmohadi]

Good strategy, if price go up, collect put premium, loss potential profit. If price goes up, collect call premium, loss when get assigned.

Worst case scenario,
-> price goes up, stocks got sold, reap premium,
-> price goes down, got assigned, reap premium.

Price Continue to goes up, continue the strategy,
Price continue to goes down, continue the strategy with stock that got assigned. Never ending cycle lol.