Here's a basic one:
An announcement is due to be made that will dramatically affect price movements on any given market e.g. FED interest rates, MandA news, earnings reports etc. But you're not sure how the announcement will affect price (up or down).
So buy cheap, leveraged options at both ends of the extreme price range.
Risk is limited.
Exit when one option has paid for the other and shows profit. Leave second option open. Value will increase when price swings back again.
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