High Volatility Options
Making profits in volatile markets no matter what direction it takes
There are two different strategies that can be acquired on Hegic to make profits in low volatility situations:
Most important thing to know about these strategies is that you are making a bet that the price of an asset will soon rise or fall significantly in either direction.
Instead of being bullish or bearish about the future price, you can have the following reasoning when buying Straddle or Strangle: “I don’t care what the price will be, but if it changes significantly in either direction during the period of holding the Straddle/Strangle, I win big.”
Key difference between the two is that Strangle is combination of OTM call + OTM put, while Straddle is combination of ATM call + ATM put. This means that Strangle is quite cheaper than Straddle.
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