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Exploring Short Dated Index Option Straddle Pricing

Exploring Short Dated Index Option Straddle Pricing

Aired On

May / 17 / 2023
12:00 pm - EDT
Russell Rhoads
United Ethos Wealth Partners

Option trading volume has been very strong over the past couple of years and a big contributor to this increase has been daily options on indices like the S&P 500 and Nasdaq-100. We will explore the pricing of these options relative to subsequent market moves as well as strategies that have been implemented by large traders to take advantage of daily expirations.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from United Ethos Wealth Partners and is being posted with its permission. The views expressed in this material are solely those of the author and/or United Ethos Wealth Partners and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Options (with multiple legs)

Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. "Characteristics and Risks of Standardized Options"

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