Today we are looking at a long straddle. You can find this in The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle.

In this episode, Brian discusses:

• A review of the long GPS put spread that was adjusted into a butterfly
• How was the butterfly constructed, and for what price?
• What has happened since the adjustment?
• What to do now?
• Remember, butterflies love time decay
• Moving into the healthcare sector, implied volatility is low in Abbot Labs
• Where is 30-day IV in Abbott Labs?
• When does ABT announce earnings?
• Putting on a 35-day straddle
• Picking strikes
• What is the cost?
• What about a fig leaf? (aka leveraged covered call)
• Picking the strikes
• What is the cost?

Do you have questions that you would like answered on the show? Send them to Brian at [email protected].