Buy call and put option at the same time


To be both long and short a stock can not be done in a single retail brokerage account. The earnings announcement was made after the close. Our example for the straddle strategy is Google. The opening price on the put option was 10 cents. The Connors Group, Inc.

It must be noted that the straddle requires a large move to be profitable. Now that the basic elements of the call and put option contract are laid out and we have reviewed examples of how each type of contract can be used profitably, it is now time to examine when simultaneously purchasing both a call and put option can be profitable. These prices must be multiplied by to provide the actual cost of the options.

Our example for the straddle strategy is Google. It would not be possible for the average retail trader to have achieved a position of this type using just stock. The put option has become virtually worthless. What has happened to the option values. The put option benefits if the price goes lower.

John Emery has been a professional trader for more than a decade, trading in stocks, options and stock indexes on a daily basis. The earnings announcement came out after the close on Thursday April For this reason, the May options series is used in the example. The April stock option series expired with the close of trading on Friday April 18,

For this reason, the May options series is used in the example. If there was a delay in the announcement, there was no time remaining to benefit using the April Contracts. To be both long and short a stock can not be done in a single retail brokerage account.

If there was a delay in the announcement, there was no time remaining to benefit using the April Contracts. The April stock option series expired with the close of trading on Friday April 18, The opening price on the put option was 10 cents.

The straddle is used if a major move in the stock is anticipated. The call option benefits if the price goes higher. It would not be possible for the average retail trader to have achieved a position of this type using just stock. The April stock option series expired with the close of trading on Friday April 18, Since it is impossible for both options to be profitable at the same time, the stock price has to rise or fall more than