Option strategies help!!
Hi, I know this is an IB forum but I have a question regarding options that I don't know and hope someone will help me with it if any of you happen to have knowledge in this area:
What could be the appropriate options strategy for an investor that does NOT expect a large price movement of a given underlying?
I know for the opposite (expect a large price movement of a given underlying) would be a straddle, but what about the one above?
Thanks!
I think I have already answered this question, but selling a straddle would be the simplest way. Other methods that you could use are selling a strangle, selling a butterfly spread, selling an iron condor, and buying a calander spread (long back month, short front month). I would just sell a straddle the keep things simple unless you have a specific reason to trade something else.
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