Straddles seem to good too be true, but maybe I'm missing something?
It seems all you need do is find a trending stock and place an ATM straddle out for 6+ months?
Anyone use alot of straddles?
Of course, it's a double debit to open, so bid and offer are crucial, but it seems like they could be very profitable.
Mind you, I'm paper trading them at the moment and haven't placed any in the real market.
Any comments - thanks.