High Volatility Strategies
Making profits in a volatile market no matter which direction it takes.
There are two strategies available on Nexo Options to generate profits in high volatility markets:
The key idea behind these strategies is that you are betting the price of an asset will rise or fall significantly in either direction.
When buying a Straddle or Strangle, the reasoning is:
“I don’t care what the price will be, but if it moves significantly in either direction during the period of holding the Straddle/Strangle, I win big.”
The main difference between the two is:
Straddle = ATM Call + ATM Put.
Strangle = OTM Call + OTM Put.
This means the Strangle is generally cheaper than the Straddle.
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