Many analysts believe the US dollar is well overdue for a rebound. Others says it will continue to sink and gold and oil will soar. Yet others say that oil is artifically high. What is an investor to? Who do we believe?
With straddles an investor can make money regardless of market conditions, as long as the underlying stock noves, either up or down.
Here are strangles for the dollar (through UUP), gold (through Yamana), and oil (through UCO.
The tables above show the maximum move required to achieve profitability in each position. They were calculated with our StraddlesCalc tool. Actual moves can be significantly smaller since there is lots of time to expiration and there will be residual value left on the losing branch of the straddle.
Options are extremely dangerous and may cause 100% loss. This is not advice. Please do your own due diligence.
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