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texanko

Straddles on Volatile Stocks

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I think it's pretty safe to assume the next few weeks are going to be pretty volatile due to the looming interest rate hike (which might get pushed back), China fears, earnings, etc. 

 

In times like this, where we employ a lot of non directional strategies, does anyone trade straddles on volatile stocks like GPRO, BABA, etc? 

 

I'm thinking about trading Sept monthly straddles on GPRO and BABA. 

Edited by texanko

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We need to see how the prices are. If the stocks are volatile, the prices might already reflect that, and if IV comes down and the stock doesn't move, the trade will suffer. I still prefer to trade expirations that are supported by upcoming earnings. 

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