short straddle options... anyone use em regularly?

[Grain_Trader]

http://www.theoptionsguide.com/short-straddle.aspx

Was talking with a trader the other day who recommend me a short straddle option trade in soy's... It can be a risky trade if things Dont go well... JW if any of u use em regularly?

[Hobbyfarmer]

There are two slot machines in Laughlin, Nevada at the Tropicana casino that for only about $7.20 a time, have a payout of a little over $1.5 million, odds are about the same long term as messing with a broker,  payout on the machine is way better if it works.

[giolucas]

Play the Powerball, you have better odds.

[hardnox]

Probably best when you think Implied Volatility is overvalued and in the contract that is just coming into lead position so that time value erosion is high.  And you need an absolute exit point if you're wrong.

[hardnox]

If you really think it isn't going anywhere then that's a way to play it.

If you have a slight directional bia I prefer a delta neutral strategy with futures offset by a OTM option position with a similar delta. Also requires a stop point.

[hardnox]

BTW, since I don't do enough to justify spending the money for a quote system that has the greeks and other inputs in real time I find it useful to have a broker who does.

If I paid that much I'd probably feel like I had to use it so paying a retail commission is worth it.