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Straddle Options

Home Page: To those of you who have arrived at this site on option tradingoptions trading straddle trader anna and straddles  by surfing the web, may I offer you a very warm welcome, and to those who have arrived from the Options Trading Site - welcome back! I hope you find this site both helpful and informative and like all my sites the information is provided free of charge. Options trading is not for the novice trader, as both the terminology and the trades available can be complex and confusing. This site is dedicated to one type of options trade - the straddle. Options by nature are extremely flexible instruments, and there are many ways to trade them - using a straddle is just one of these strategies. If you would like a good introduction to options I have recently published a site dedicated to options trading, which has several pages on options, how they work and the various aspects you will need to understand in order to trade them successfully. I also have a site on covered call writing, another options strategy which I use All the information is free ( as always ) As a full time trader I love trading options, but as I'm sure you know, you will need a specialist broker.

Finally, I now run FREE live training rooms to help traders get started on their own trading journey. So if you would like further details please just click the link above.

Discover the power of volume price analysis - on Amazon NOW

A-Complete-Guide-to-Volume-Price-Analysis-book-cover-design-1bThis is the book I have been meaning to write for many years. Finally, I have found the time to do just that!

Now a No 1 Best Seller: International Foreign Exchange

Volume has been the cornerstone on which my own trading career has been built. It was where I started, and I consider myself fortunate to have done so. Why? Because volume and price are the ONLY leading indicators of future market activity. Many traders never discover their awesome power until it's too late, relying on lagging indicators, which.........lag the market. Now finally it's here. In the book you will discover the unique approach that is VPA, or Volume Price Analysis. Price on it's own is just that - a price. Volume on it's own is just that - volume. But combine them together, and just like adding saltpetre, charcoal and sulphur, they become an explosive mixture. Your charts will quite literally EXPLODE into life. Suddenly you will have the insight to read the next market move, before it happens. Now, with VPA your trading will become stress free and enjoyable. Why? Because your trading decisions will be based on logic and common sense. The insiders simply CANNOT hide market activity from view. All you need to do is interpret the volume price relationship - then simply follow them. AND YES - even in the spot forex market!!

Discover how in the book, and your own success will follow

Here are some of the wonderful comments I have received on emails from customers who have bought the book - thank you so much - Anna

Dear Anna, I want to thank you so much for providing retail traders with a wonderfully written, fun to read, and very smart book ! I just finished your “A Complete Guide to Volume Price Analysis” and found it thoroughly enjoyable, and very, very informative. I had been introduced to some of these concepts before ( “volume spread analysis”) but have to tell you that your style and approach is a lot easier to comprehend, and a lot easier to actually put into practice.  JK

Dear Ms Coulling, I found your book on Amazon by chance, after having typed in Trading using Volume Price Analysis. Got the book this week, and I am already half way through it. Your exposition of the volume behaviour in the market and how different price bars relate to volume is fantastic. It truly is an eye opener. I have been interested in the Wyckoff approach for a while, but have not found something as clear as your book. Thanks for writing such a great book. SG

And now for another......

If you are new to the world of forex trading, then the following book may be for you. I remember what it was like when I first started and it can be a confusing and complex market to interpret.

In the book I explain the forces that drive the markets, and the broad approaches to analyzing market behavior. I hope it will provide the background knowledge to help you become a better trader, as you enter the world of forex trading.

An introduction to the forex market - on Amazon NOW!

A Three Dimensional Approach to Forex Trading book cover design 3e

Success for many traders remains an elusive dream, and whilst the trading process itself is relatively simple and straightforward, the markets themselves are most certainly not. Indeed of the four principle markets, forex is the most complex of all, and yet is promoted as one that could be your own personal ATM machine. Nothing could be further from the truth, which is why many aspiring traders ultimately fail and either give up, or move on. This is a great shame, as it's not their fault, and is simply because no-one has ever explained how the markets, and in particular, the forex markets, really work.

If this sounds familiar, then this book is for you.

The forex market is far from simple, and the tools and techniques you will need to survive and prosper are varied. Many budding traders approach the world of foreign exchange in a one dimensional way, either in adopting one single analytical technique, or by assuming that this market works in isolation to all others. Both are equally dangerous. The forex market sits at the heart of the financial world. After all, every decision by every speculator, trader or investor is about one thing, and one thing only - money. The FX market embraces every aspect of risk and return in financial terms, which is then overlain with the political and central bank manipulation, all part and parcel of this world. To succeed as a forex trader, you need to equip yourself with the tools, the knowledge and the techniques to take on the immense forces ranged against you. Approach the forex market with a pea shooter and you will simply become another casualty. Arm yourself with this book, and you will then enter the forex trading world, fully mobilised with the appropriate weapons, of which knowledge and insight are the most powerful.

 

Click here to grab your copy from Amazon - NOW 

 

And don't forget as the late great Jesse Livermore once said: "It [the market] is designed to fool most of the people, most of the time"

Coming soon - on Amazon Kindle, and in paperback

Forex For Beginners Cover 1 - Purple

Forex For Beginners is a step by step guide to help you get started in the exciting world of forex trading. The book leads you by the hand, from explanations of how and why we have a forex market, how it works, and the mechanics of placing trades. The various analytical approaches are explained in detail, along with understanding the importance of volume and price. From there, the book moves on to explain the concepts of margin and leverage, trading plans, quantifying risk money management, and position sizing. Then, it’s putting it all together, as we walk through complete trades together, from start to finish, with several worked examples. Finally, the book explains key elements of the MT4 platform, and how to place and manage trades. Throughout the book there are hundreds of images and pictures, with simple explanations, to help explain everything clearly, so you will learn fast - and nothing has been left out. If you want the complete book, from novice to placing your first trade, and everything in between, then this is the book for you! The book will be published in the next couple of weeks at a very special promotional price, so please grab your copy FAST. As always - thank you all so much for your kind comments and feedback on my other books. I cannot tell you how touched I have been, and I hope that you enjoy this book, as much as the other two. As soon as it's available, I will add the link here. All best wishes many thanks - Anna 

    If you would like to follow some of my trades, I do post regularly on Twitter which is often called a "micro blogging" service. For those of you who are not familiar with it, it is simply a quick way to stay in touch with friends, family and news. You only link to people who are of interest to you, and the longest message is limited to 140 characters, so messages are short and sweet! It is ideal for me as I can update very quickly from my screen with details of possible trades, opportunities, news and also details of when my other sites have had new posts added, so you are always in touch. If you would like to follow me, and you already have a Twitter account, please just click on the "follow me on twitter" link above, or alternatively open an account with Twitter and then follow me. In addition I am also on Facebook, and MySpace, and would be delighted to hear from you there. I will shortly be opening a trading room on FriendFeed which will be available for you to meet other traders and investors and to discuss trading ideas, problems and strategies, along with access to my own trading suggestions. So there is a great deal going on at the moment, and please don't forget, you can always ask me a question at the new 'Ask Anna' site, or simply review trading questions asked by others so I hope you enjoy this new site.

    I am in the process of updating all my sites which will include daily posts and videos by me, about future market directions, suggested trades, and opportunities for future trades. In addition when a site has been updated with a new post or video then these details will also appear immediately, which I hope you will find useful, and I look forward to welcoming you via one of the above.

    Learn Options Trading - The Long Straddle

    The straddle is an interesting options trading strategy as it is one where we have no idea on the future direction of the market, but feel sure that it will move significantly in one way or the other. The key word here is significant as the success of the trade depends on a major move in the underlying asset, which in this case would be the equity option. The trade itself is a net debit trade, since, as you will see we are buying two options simultaneously, which involves a net debit, rather than a credit as in other option trades. For it to be successful, the straddle trade therefore depends on volatility entering the market, either directly in the underlying asset, or indirectly to the market as a whole. The straddle is a direction neutral strategy as it has no bias in either direction. Does this mean we just guess - NO. There are several aspects to the trade which we will consider in a minute, but you will need to understand about online option trading volatility along with Japanese candlestick analysis. I have presented these subjects elsewhere in detail so please click on the links for an overview on these topics.

    Now, it is important to understand that there are two types of straddles, the first is a long straddle, and the second is a short straddle. The risk profiles for these strategies is very different. The long straddle is essentially a low risk high reward trading approach, whilst the short straddle is the exact opposite, a high risk limited reward. In my view I would never trade a short straddle as it exposes you to unlimited risk  - a thing I never do in my trading. The risk reward profile for the long option straddle is very different and offers you a defined and limited loss, in return for unlimited profits. As with covered call writing this is a relatively low risk options strategy, and it is a trade you can exit if the required volatility does not appear by selling your options back before expiry.

    OK, let's have a look at how the long straddle works and the research you have to do in order to find good prospects for this trade in your options trading.

    Options trading straddle - next page

    I am developing more sites on all the various option strategies so please check back regularly.