Cap Req: 7,800.00, risk / Reward:.61, max Return: 179.82. In the options universe, IVolatility's Historical End of the day (EOD) Options Data offers the most complete and accurate source of option prices and implied volatilities available, used by the leading firms all over world. Buying Straddles into Earnings Buying straddles is a great way to play earnings.
A simplified example is provided below to show how it is done. These market scenarios simulate events such as price changes in the underlying, both up and down, along with implied volatility shifts in portfolios, including options positions. Each day, as part of its risk management policy, ibkr simulates thousands of profit and loss scenarios for client portfolios based upon a comprehensive set of sector-based market scenarios for all pre-defined primary risk factors. Weeklys options provide end-of-week expiration opportunities so that investors may implement more targeted buying, selling or spreading strategies. To play it safe, the fund manager assumes that the VIX will rise by only 40 when the SPX drops. They are known as "the greeks". Following that simulation, all other product(s) in the portfolio are adjusted based upon their respective correlation.