A short straddle is an appropriate strategy if:________

Business

1 answer:

Iteru [2.4K]2 years ago

8 0

Answer:

B. An investor expected share prices to remain in a trading range.

Explanation:

The short straddle strategy can be defined as the one in which the investor expects the stock prices to remain in the trading range, that is, they are the shares that will be traded with prices without change on the maturity date, regardless of whether the quotation at that price action is more valued.

Therefore, this is a strategy that should be used more by investors with more experience in the market, so that the shares chosen to be launched as short traddle are those that will be stable, and thus do not incur on the profitability obtained by selling the shares.

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