Neutral Strategies for Futures Options

Jun 6, 2022

By The Small Exchange

Overview

The straddle is considered the most aggressive neutral strategy in the world of options, and selling the at-the-money straddle can greatly profit from the market not moving. Mike and Frank size up the short straddle using futures options on the Small US Dollar (SFX) market to show how high their potential return on capital (ROC) can get given the efficiency of futures options.

Learn how our experienced derivatives traders enter, manage, and defend the straddle strategy using futures options, and find out if the high potential ROC fits into your portfolio.

Content

0:05 Neutral Strategies for Futures Options

2:05 The Short Straddle

4:40 The Futures Options Short Straddle

5:10 Managing Winning Trades

7:10 Managing Losing Trades

8:35 Start Your Futures Trading Journey Today

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